Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Big Gold takes a pounding

Wednesday, 5 October 2016

Big Iron is down today as markets fret about the Fed. BHP is -0.9%, RIO -1.8% and FMG -1.5%:

The immediate prospects for RIO and FMG are dimming. Though the chart for RIO has formed a bullish ascending triangle, the chart for FMG looks very double toppy. It is my view that iron ore has gotten off very lightly this week on the news flow of rising supply and inventories plus a rash of Chinese property tightening. Next week could see iron ore hit harder. The BHP re-rating may still have a better outlook but only relatively so on oil and coking coal.

Big Gas meanwhile is seriously under-performing oil, quite sensibly, with WPL -1.3%, OSH 1%, ORG -2.2% and STO flat:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.