There’s Gold in Them There [Gold Stock] Earnings

Look, I have been beating the drum about the gold sector being in a daily downtrend until it can clear certain technical objectives. As a sector, it has not yet cleared most of them.

I’ve also noted positives in play ranging from the vastly improved gold and silver CoT data to the out performance and positive divergence by several gold stocks including Royal Gold, Franco Nevada, Kirkland Lake, Kinross Gold, Sabina Gold & Silver and so on. While certain macro fundamentals remain holdouts as of T-minus 2hrs and 6 minutes to FOMC, another positive we’ve noted is 2017’s out performance of the miner product (gold) vs. miner cost input (oil).

Here’s the gold/oil ratio’s 2017 stair-step uptrend.

gold/oil ratio

We recently noted in NFTRH that the improved cost implications of gold/oil could start showing up in Q2 reporting, which has now begun. So while the sector itself is still locked down technically, here is Newmont joining the out performance party on earnings, which included lower than expected costs of production. Were they all fuel-related? Probably not. One would need to dig into the details (which I’ve not done) to fine tune it. But NEM has checked the right box for Q2. Clicking the graphic yields the article.

barrons

Here is the chart. One wonders if others have similar surprises in store.

nem

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