Ninepoint Says Gold Hold Above $4,000 Signals Bull Market Pause, Not Bear Turn
Updated
Updated · Kitco NEWS · Jul 9
Ninepoint Says Gold Hold Above $4,000 Signals Bull Market Pause, Not Bear Turn
2 articles · Updated · Kitco NEWS · Jul 9
Summary
$4,000 an ounce has become a key floor for gold, with Ninepoint's Nawojka Wachowiak saying the recent selloff is a healthy correction that opened buying opportunities in bullion and miners.
Higher U.S. rate expectations, a stronger dollar and uncertainty around new Fed Chair Kevin Warsh have hurt sentiment, but she said central-bank buying, geopolitical risk and debt concerns still support the longer-term case.
About 1,000 tonnes of central-bank demand this year—equal to roughly 15% to 20% of annual mine supply—should keep a powerful buyer under the market on pullbacks.
Gold miners remain highly profitable even after the correction, Ninepoint said, with roughly $3,000 an ounce in all-in sustaining cost margins and many producers trading near 8 times EV/EBITDA.
Even if elevated oil adds $70 to $95 an ounce to costs, the firm argues balance-sheet discipline, buybacks and conservative mine plans leave the sector positioned for the next leg higher.