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the De Gray Mining Limited (ASX: DEG) The share price is in the green this afternoon and is now trading 0.83% higher at USD 1.22.
The gold exploration company’s stocks are moving, although there is no market-sensitive news from its warehouse today.
At the start of the day, Gold Explorer’s shares were intermittently in the red, hitting an intraday low of $ 1.17. They got into the money just after 11 a.m., which is where they have stayed ever since.
What happens to De Gray today?
De Gray Mining’s share price is just below that S & P / ASX All Ordinaries Gold Index (ASX: XGD) today, which has climbed 1.05% since trading opened.
This suggests that there may be some strength in the ASX’s broader gold sector today that could support the company’s price action.
De Gray Mining’s share price is up 26% over the past week, leading the ASX Gold Index’s 6% increase.
The gold price also recovered last week, having soared by US $ 30 / t.oz since September 30 and reached a high of US $ 1,768 / t.oz on October 4.
The latest gains are a reversal of a longer-term downtrend that began in June when the yellow metal price bottomed on September 29th.
Today it’s up 0.3%, hitting $ 1,760 / t.oz on the last review, not far from its recent highs.
De Gray’s industry is in a unique position as participants have to accept on the supply side prices offered on the spot and futures markets for the commodity it is exposed to – gold.
This means that the markets determine the price the company gets for its hard-earned work. As such, it is considered a price taker, and its share price can and will fluctuate with price developments in the broader gold markets.
Two recent updates seem to have excited investors. De Gray announced a positive scoping study and drill results indicating high gold production at two of the Company’s locations.
De Gray Mining’s share price is up 28% from an earlier low of 93 cents following the release of both announcements last week.
Snapshot of De Gray Mining’s share price
The company’s shareholders have been on a wave-like journey over the past 12 months. De Gray Mining’s share price has fallen 0.2% during this period. However, this year it’s up 20% to date.
Also last month it is up nearly 11% and last week it is up 26% despite today’s selling pressures.
For comparison the S & P / ASX 200 The reference index of (ASX: XJO) has achieved a return of around 20% in the last 12 months.