Hedge Fund manager Jim Chanos has talked freely about his bearish views on miners and mining related industries. It is known he is shorting Fortescue Metals Group in preparation for a share price slide as supply chases down demand in China.
Chanos’ comments could take some heat out of the miners over the coming days as the market digests the news and considers taking profits.
BHP Billiton, Rio Tinto and Fortescue are all enjoying a more stable iron ore price and are edging back to yearly highs reached in February.
Despite strong leads in general from offshore, gold miners might yet again be out of favour with investors. US jobless claims held near six-year lows, encouraging thoughts that the Federal Reserve will consider tapering. Spot gold lost ground, closing at $1323.
Gold miners have been moving more aggressively than the actual per cent price change in gold. With concerns over cost inflation, it has become an increasingly sensitive sector.