Gold the bright spot on flat day for ASX

Shaky US jobs data and the subsequent sacking of the labour statistics chief has seen investors flocking to Australian gold stocks on Monday. While the ASX200 closed up by the barest of margins on Monday, the gold index benchmark grew 3.5 per cent to start the week. At the close of trade, strong consumer staples and materials sectors had dragged the S&P/ASX200 to a 0.02 per cent gain, closing up 1.7 points to 8663.7. The All Ords rose 0.06 per cent. Gold shares were the shimmering highlight on the day, with the S&P/ASX All Ordinaries Gold benchmark gaining 3.57 per cent. Western Australian, Northern Territory and Alaskan operator Northern Star Resources – up 13 per cent on the year – tacked on another 5.6 per cent gain ($16.16) following the presentation of details from a site visit in Kalgoorlie. The inland city is hosting the Diggers and Dealers mining forum this week, and the historic town will be heaving following Monday’s sterling gold results. Bellevue Gold shot up 6.4 per cent ($0.82), Mineral Resources’ price lifted 3 per cent ($30.76), and Evolution Mining rose 2.5 per cent ($7.23). Evolution Mining boss Lawrie Conway warned the Kalgoorlie conference that boom cycles had been squandered before. “As an industry, we have been poor allocators of capital through these periods of record margins,” he said on Monday. The gold price has risen $1000 in the space of four months. “It’s imperative for us … when the cycle turns, our shareholders aren’t left looking and saying, ‘Where is the cash?’,” Mr Conway said. Across the border, the Whyalla steelworks and its associated iron ore mines are the target of a potential offer from Bluescope Steel and an international consortium. That news pushed Bluescope’s share price down 1.2 per cent, closing at $23.10. The surge in gold has been ignited and sustained by rumblings in the US. Underwhelming jobs data at the end of their week prompted Donald Trump to sack the Bureau of Labor Statistics chief, sowing doubt in US economic data. “The dire US jobs report raised expectations of a Fed rate cut in September and prompted risk aversion flows, including buying of gold,” said IG market analyst Tony Sycamore. “The rebound from the $US3265 support zone suggests gold is consolidating gains from the first half of this year in a range between $US3450 and $US3250.” After an eight-month high a couple of weeks ago, the Aussie dollar has settled at 64.8 US cents. Trailing the materials sector at the top of the heap, consumer staples also had a bountiful day. This charge was led by gains for Coles (1.7 per cent) and Woolworths (1.3 per cent). In lock-step, health and wellness food company OMG Group shot to a 7 per cent gain ($0.008), while Farm Pride Foods, Pure Foods Tasmania, Synlait Milk and Ricegrowers Ltd all rose more than 3.6 per cent. From the farmgate to the bar stool, pub and hospitality giant Endeavour Group surged to a 2.9 per cent gain on the news its dual chairman-chief executive was quitting over board disagreements. Endeavour owns Dan Murphy’s and BWS. The company already lined up former Virgin Australia chief executive, Jayne Hrdlicka, to take charge in the new year. Despite Monday’s bump, Endeavour shares are down 23 per cent on this time last year. With an essentially flat day in local trading, six of 11 sectors finished in the red, with financials, energy and industrials being the dead weight.