To The Moon

As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,145.10 points, down -0.14% in the past 5 days. During the last 5 trading days, $De Grey Mining(DEG.AU)$ was up 10.04%; $Capricorn Metals(CMM.AU)$ added 10.02%; $Sandfire Resources NL(SFR.AU)$ rose 8.56%; $Northern Star Resources(NST.AU)$ was up 8.53%; $Regis Resources Ltd(RRL.AU)$ increased 8.21%. Among the top five gainers, four of them are gold-related companies. They are the biggest gainers in this week’s gold rebound. $De Grey Mining(DEG.AU)$ engages in the exploration of mineral properties in Australia. It primarily holds a 100% interest in the Mallina Gold project covering an area of approximately 1,500 square kilometers located in the Pilbara region of Western Australia. $Capricorn Metals(CMM.AU)$ explores for, evaluates, and develops mineral properties in Australia and Madagascar. It holds a 100% interest in the Karlawinda gold project located in the Pilbara region of Western Australia. $Northern Star Resources(NST.AU)$ engages in the exploration, development, mining, and processing of gold deposits in Australia. It also sells refined gold. $Regis Resources Ltd(RRL.AU)$ together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in Australia. 1. Gold rebound after hitting the support line. May go higher despite of debt-ceiling agreement? After reaching a support level last week, gold has started to rebound this week. Technically, the current gold price is running near the 20-week moving average (around $1945), which has been a long-term trend line for gold since its rise in November last year. If the price falls below this moving average, it would be difficult for gold to establish new highs in the medium to long term. However, if it manages to sustain the support, a new high for gold could be expected, and it may not be far off (within 1-3 months). Fundamentally, the rebound in gold price indicates that the market is not very optimistic about the content of the debt ceiling agreement. This agreement can be seen as a temporary postponement, as the same issue will resurface in two years. If both house and senate are controlled by the same party after next year's election, there may be no further problem. Otherwise, similar debt dramas are likely to occur more frequently, making it difficult for gold to exhibit a downward trend. Although the banking crisis seems to be "resolved" and the debt ceiling is also close to being "resolved," the biggest problem in the current market is the continuous influx of negative news, making it challenging for gold, the preferred safe-haven asset, to experience significant declines. 2. Copper mine updates of $Sandfire Resources NL(SFR.AU)$ Mining company, Sandfire Resources Limited, primarily explores for copper, gold, silver, lead, and zinc deposits. Sandfire Resources rose after the company release updates on copper mine. Sandfire Resources has achieved the production of the first copper concentrate at its Motheo copper mine in Botswana's Kalahari Copper Belt. The construction of the mine is nearing completion, with over 92% of equipment commissioning activities already finished to support the initial processing capacity of 3.2 million tonnes per annum (mtpa). Sandfire aims to ship the first copper concentrates from the mine by mid-year. The company has also received environmental approval for the A4 deposit, which will contribute to the planned expansion of the mine's capacity to 5.2 mtpa. The Motheo mine is located 70km from Ghanzi and has an estimated mine life of ten years.