WA junior caps have continued their impressive run up the ASX ranks this week amidst gold’s 10th record all-time high this year.
Spot gold gained 0.7% to US$2,954/oz, already a 12% rise so far this year, and a sustained break above the US$2,950/oz barrier could resume the record rally. The next relevant resistances are seen at US$2,970/oz and the pivotal US$3,000/oz mark.
Gold last year rose 27%, even outperforming the breakaway S&P 500 and its outstanding run has continued into this year, sending Goldman Sachs back to revise its target price for bullion yet again to US$3,100/oz by the end of the year.
That's because while many see the precious metal as the perfect hedge against inflation and economic turmoil, others question whether bullion prices have been overcooked and are due for a pullback.
It seems the banker is having trouble making these long-term predictions on gold lately - at the start of January it revised down a US$3,000/oz price target to US$2,910/oz due to perceived slow monetary easing this year.
Meanwhile, U.S. Treasury Secretary Bessent dismissed recent market reports suggesting that the government might revalue its gold holdings either to reduce borrowing needs or to fund the creation of a sovereign wealth fund.
America's gold reserves are currently valued at US$42/oz, a price set in 1973.
WA goldies on a bull run
ASX gold juniors Western Gold Resources (ASX : WGX) and Cavalier Resourves (ASX : CVR) have both been screaming up the stock charts this week, with gains of 35% and 120% respectively since last Friday's close.
WGR is staring at a 616% IRR for its developing Duke project in WA's Murchison, while Cavalier has just scored an $11 million non-binding funding package for its Crawford project.
