"" Asian Gold Miners Benefit from Bullion's Overnight Surge
Asian gold mining stocks rose sharply on Thursday as bullion held above the psychologically important $4,500 an ounce level, extending the benefit from its biggest overnight rally in nearly three months.
According to Investing.com, gold was last down around 1% on the day, but remained above $4,500 after surging 4.4% overnight to finish at $4,523, its highest close in almost three months.
The overnight rally came after gold decisively broke above several technical barriers, including downtrend resistance around $4,430, last week's $4,449 high and its 200-day moving average near $4,509.
A sharp drop in the dollar and lower long-term U.S. Treasury yields, following the U.S. Treasury's announcement of plans to at least double the size of its buyback operations for longer-dated government bonds, drove the move.
Growing concerns over the U.S. government's fiscal position, with national debt surpassing $40 trillion, also found support for gold.
In Hong Kong, Zijin Gold International rose 15.90%, while Zhaojin Mining gained 8.57%, Shandong Gold climbed 8.12%, Lingbao Gold advanced 8.08%, Chifeng Jilong Gold Mining added 6.19% and Zijin Mining rose 6.42%.
Australian miners also rallied, with Ramelius Resources up 11.17%, Genesis Minerals 10.88%, Regis Resources 10.78%, Perseus Mining 10.12%, Evolution Mining 10.05% and Westgold Resources 8.65%.
Northern Star Resources gained 5.92%, while Newmont rose 7.10%. Sumitomo Metal Mining jumped 10.45% in Tokyo.
The metal remained near its highest level since early June on Thursday despite the modest pullback.
