De Grey Mining down 7% amid struggling gold prices

Yesterday, gold reached a seven-week low in US trading.

| More on:
A woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face as the Kingsgate share price goes lower

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • De Grey's share price has whipsawed lower today after reaching a four-month high on Monday 
  • The price of gold could be putting pressure on the company's shares
  • In an investor presentation yesterday, the company revealed that it could have one of the world's largest undeveloped gold projects

The De Grey Mining Limited (ASX: DEG) share price is down 7.31% today.

De Gray shares peaked at the open today at a high of $1.08, before tumbling to a low of 99.5 cents at midday. At the time of writing, shares of the gold explorer trade for $1.015.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down, too, at a 4.34% loss.

Meanwhile, other ASX gold shares also have a rough end to the week.

Gold Road Resources Ltd (ASX: GOR) is down 6.2%, and Ioneer Ltd (ASX: INR) is down 1.14%.

There are no announcements from the company today to make sense of the sell-off in its share price. But some developments have emerged over the last week. Let's investigate what happened.

What's going on with De Grey shares?

According to Markets Insider, the spot price for gold has declined 2.53% over the past week. But the spot price has recovered by a modest 0.16% today.

Yesterday, gold reached a seven-week low in US trading. The price of silver suffered, too, with the precious metals competing for investor capital amid a stronger US dollar and soaring yields on treasury bills, as reported by Kitco.

Some positive developments occurred for De Grey, too, over this time, including making an investor presentation at the precious metals summit conference in Beaver Creek, Colorado, on Thursday.

Some highlights from the report were that De Grey's Mallina site has the potential to be one of Australia's top five gold mines for FY22 production volumes. Further, it claims to have one of the world's largest undeveloped gold projects.

On Monday, the De Grey share price shot up to a four-month high.

De Grey share price snapshot

The De Grey Mining share price is down 15.42% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 11.05% over the same period.

The company's market capitalisation is $1.54 billion.

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Gold bars and Australian dollar notes.
Gold

Down 21% in a month, should you buy Newmont shares before they trade ex-dividend?

This gold stock has been battered by the markets.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Gold

Why is this ASX 300 stock crashing 32% on Monday?

Let's find out why investors are hitting the panic button this morning.

Read more »

A few gold nullets sit on an old-fashioned gold scale representing ASX gold shares
Gold

Are ASX gold shares still worth buying after the US election?

We discuss some expert opinions on where gold is heading to next.

Read more »

Gold nugget with a red arrow going down.
Gold

ASX 200 gold shares dive on US election result

Gold shares are going wild this Thursday.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

2 of the best ASX gold stocks you could buy now

Bell Potter is bullish on these gold stocks. Let's find out why.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Gold

Why is this ASX gold share crashing 22% today?

Let's find out why this gold miner is down in the dumps on Tuesday.

Read more »

Gold bars with a share price chart in the background.
Gold

Why ASX 200 gold stocks look 'undervalued' heading into 2025

The ASX Gold Index is up 37% in a year, but gold stocks are still looking undervalued.

Read more »

A mining executive from Red Dirt Metals chats on her mobile phone looking pleased with a mining site and mining truck in the background
Gold

Which soaring ASX gold share now has $200 million more financial firepower?

Funds will be used to expand operations.

Read more »