Scotia had an interesting chart and blurb in its morning mailer today. Here it is:
Senior Golds are Inching Towards Lowly P/NAV Lows of 2008? Tanya Jakusconek this morning highlighting that our North American gold group is currently trading at 0.90x – the 2008 low was 0.79x. This morning Scotia Mocatta’s Simon Weeks notes that physical demand for Gold has returned, largely from India where they have been noticeable by their absence of late. Gold has closed lower in 7 of the last 9 sessions and given the two way interest that lies in this $1550 – $1560 corridor as well as the return of some reasonable physical demand it’s probably time to take a breather on the downside especially given some signs of euro strength this morning following German GDP numbers were 5x higher than consensus (not looking like a recession).