Oversold gold ?

Two caveats before discussing gold. First, as it generates no cash flows, a hard asset such as gold is inherently difficult to value: its price is ultimately driven by supply and demand. Second, we rarely rely on technical indicators other than as an overlay to our fundamental analysis.
With that in mind, gold rose more than 4% yesterday and appears to be rebounding from deeply oversold levels. A weaker dollar, stabilising real yields and continued central-bank demand could provide support, although the Federal Reserve remains the key short-term variable.
We have used the recent correction to build a position in Newmont in our SSF – Global Equities Family Business fund. Newmont is the clear scale leader, with a concentrated portfolio of long-life assets, a net-cash balance sheet and meaningful copper exposure. The shares are around 20% below their January high, while current gold prices continue to generate substantial free cash flow, dividends and share buybacks.
Sometimes, the more attractive opportunity is not the metal itself, but the disciplined producer extracting it.