Insights

Why is the Evolution share price tumbling 10% so far this week?

Despite potential tailwinds, performance continues to head south.
The post Why is the Evolution share price tumbling 10% so far this week? appeared first on The Motley Fool Australia. –

The Evolution Mining Ltd (ASX: EVN) share price has tracked south this week, extending losses for the year to date.

At the time of writing, the Evolution share price is resting at $3.39 apiece on Friday.

In broad market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) trades 19 basis points lower at the open on Friday at 6,516.

What’s up with the Evolution share price?

Gold has weakened again with the yellow metal giving back recent gains to continue its sideways movement.

It has been volatile in recent times amid recession fears and shifting treasury yields. Prices haven’t nudged past the US$1,870 per ounce mark since 6 May.

It now trades at US$1,824 per troy ounce, around 69 basis points down on the session.

Zooming out, it now trades back in line with longer-term support levels. It has fallen from a 19 April high of US$2,052 per troy ounce, as seen below, along with the Evolution share price.

Aside from that, mining shares continue to soften on the whole with the S&P/ASX 300 Metals and Mining Index (ASX: XMM) sliding from its previous high on 8 June at rapid pace.

Investors have sold off cash flow rich mining stocks in tandem with moves in the wider market this month. Fears of a recession, inflation and surging rates continue to be priced in.

This weakness is certainly a factor in relation to the Evolution Mining share price as well.

The losses come despite reports of potential tailwinds to precious metals from stagflation. Data shows gold is a good diversifier and performs well in these times.

If that’s the case, it could bode in well for the Evolution share price.

In the last 12 months, Evolution has slipped more than 27% into the red, after sliding 16% this year to date.

The post Why is the Evolution share price tumbling 10% so far this week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Evolution Mining Ltd right now?

Before you consider Evolution Mining Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Evolution Mining Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Stagflation and gold: Could it be an ideal match for ASX 200 gold miners?
5 things to watch on the ASX 200 on Thursday
5 things to watch on the ASX 200 on Wednesday
The Evolution share price hit a 52-week low this month. Here’s why
5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Zach Bristow 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info