Gold miners such as Perseus Mining and Evolution Mining were the biggest gainers among all S&P/ASX 200 Index stocks today after the spot price of gold rose 2 per cent. The rise came as the Federal Reserve boosted the price of bullion by saying it will continue to buy $US85 billion a month worth of mortgage backed and Treasury securities.
The Fed’s monetary stimulus policy, designed to bolster the world’s biggest economy, is bullish for gold. Moreover, after reaching $US1900.23 on September 5, 2011, spot gold has fallen 32 per cent to $US1284.75, as at 1330 AEST. The managing director of gold explorer Invictus Mining, Michael Jones, says gold supply is tight and he expects an increase in the bullion price.
“We’re at or around the bottom [in price]”, says Jones, who has worked in the gold mining industry for 25 years.
Shares in Evolution Mining and Perseus Mining were both up 23 per cent at 1334 AEST. Evolution Mining surged 12.5 cents to 67.5 cents. Perseus Mining jumped 11 cents to 59.5 cents.
St Barbara, the third-best performer among the S&P/ASX200 Index companies, increased 10 cents, or 21 per cent, to 57.5 cents. Newcrest Mining, Australia’s biggest gold producer who said it may write off the value of its gold deposits by as much as $6 billion, rose $1.06, or 11 per cent, to $11.01.
The S&P/ASX200 Index was up 51.744, or 1.1 per cent, to 4953.10 at 1334 AEST.