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

A man analyses stockmarket graph on his computer.
Gold

Up 132% in a year, why is the Evolution Mining share price gaining again today?

Investors are piling into Evolution Mining shares on Friday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Gold

ASX 300 gold stock crashes 8% on guidance update

This gold miner is having a tough session on Friday. But why?

Read more »

View of a mine site.
Gold

Up 70% in a year, why this fund manager is calling time on this soaring ASX 200 gold stock

A leading investment expert foresees headwinds for this surging ASX 200 gold miner.

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Up 305% in a year, what's got investors so excited about this ASX gold share?

'First gold' is imminent...

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Why are ASX 200 gold stocks going gangbusters today?

Investors are piling into the ASX 200 gold miners today. But why?

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Gold

Guess which ASX stock is rocketing 75% on big news

Let's find out why this shares is starting the week with a bang.

Read more »

Miner looking at a tablet.
Gold

2 ASX All Ords gold stocks making moves on big news today

The ASX All Ords gold stocks are catching investor interest today. But why?

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

One ASX 200 gold stock to buy now…and one to sell

Some ASX 200 gold stocks stand to gain more from the surging gold price than others.

Read more »