ASX closes 0.4% higher as gold price hits five-month low




The price of gold has dropped to a five-month low due to improved expectations of a gentle economic slowdown in the US and a series of disappointing economic indicators from China. This decline brought the spot price of gold down to $1906.39 on Tuesday, the lowest it has been since 14 March. Market experts have differing opinions on the future direction of gold, with some suggesting it might find support around $1900 an ounce, while others remain uncertain about its outlook.

At the closing bell, the S&P/ASX 200 was 0.38 per cent higher at 7,305.


The Dow Jones futures are pointing to a fall of 3 points.
The S&P 500 futures are pointing to a rise of 6 points.
The Nasdaq futures are pointing to a rise of 38.5 points.
The SPI futures are up 24 points.

Company news

Lake Resources (ASX:LKE) completes an intermediate milestone to achieve DFS with successful extraction and injection tests at its flagship Kachi Project. In response, Lake CEO David Dickson said, “The tests represent a significant milestone for the Project, as they provide important data and higher confidence for our modelling, which is essential for the completion of our DFS for Phase 1.” Shares closed 19.1 per cent higher at 25 cents.

Chimeric Therapeutics (ASX:CHM) announced positive in vitro data for CHM 0301, its next generation armoured natural killer (NK) cell platform. The platform is designed to maximise potency and enable the cells to overcome immune-suppressive tumour microenvironments. Shares closed flat at 3.8 cents.

Sunstone Metals (ASX:STM) announced that the Limon deposit within the Bramaderos Gold-Copper Project, in Southern Ecuador, continues to grow with further wide high-grade intersections. In response, Managing Director Malcolm Norris said, “These results show that Limon is now clearly a major shallow high-grade gold-silver discovery which will underpin a significant increase in the scale, grade and development prospects for Bramaderos.” Shares closed 3.57 per cent lower at 2.7 cents.

Best and worst performers

The best-performing sector was Health Care, up 3.16 per cent. The worst-performing sector was REITs, down 0.55 per cent.

The best-performing large cap was Cochlear (ASX:COH), closing 5.69 per cent higher at $246.47. It was followed by shares in Pro Medicus (ASX:PME) and CSL (ASX:CSL).

The worst-performing large cap was SEEK (ASX:SEK), closing 4.27 per cent lower at $24.66. It was followed by shares in Pilbara Minerals (ASX:PLS) and Evolution Mining (ASX:EVN).

Asian markets

Japan's Nikkei has gained 0.62 per cent.
Hong Kong's Hang Seng has lost 0.58 per cent.
China's Shanghai Composite has gained 1.05 per cent.

Commodities and the dollar

Gold is trading at US$1,937.40 an ounce.
Iron ore IS 1.6 per cent lower at US$103.45 a tonne.
Iron ore futures are pointing to a 1.64 per cent rise.
Light crude is trading $0.15 higher at US$82.66 a barrel.
One Australian dollar is buying 65.06 US cents.


Name Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.