Editor's Picks: David Morgan Talks Gold, Liontown Rejects Albemarle

TL;DR

After reaching the $2000 per ounce mark twice in the past, the gold price has cooled down, leaving market watchers wondering what's next.

Transcript

welcome back to our weekly update I'm Charlotte McLeod with the investing News Network and I'm here to give you a quick look at our top stories for the week the gold price has cooled down after market turmoil allowed the yellow metal to break the 2000 per ounce Mark not once last week but twice gold is only past this key level a couple of times in ... Read More

Key Insights

• 😎 Gold price has cooled down after reaching the $2000 per ounce mark twice.
• ✋ Buying momentum can drive gold even higher once it surpasses previous highs.
• 💡 Lion Town Resources rejected Albemarle's undervalued bid of $250 per share in the lithium sector.
• 🌥️ The rejection highlights the potential cost for large producers seeking advanced properties in their portfolios.
• 👷 The Kathleen Valley Project in Western Australia is progressing well, with mining operations underway and construction on schedule.
• 💡 Albemarle's bid for Lion Town amounts to $3.7 billion in USD.
• 🧑‍🏭 Market turmoil and recent softness in the lithium sector are factors influencing valuation and acquisition decisions.

Questions & Answers

Q: How has gold performed in recent times amid market turmoil?

Gold reached the $2000 per ounce mark twice, first in July 2020 due to global COVID-19 pressures and next in February 2022 following Russia's invasion of Ukraine.

Q: What happens when gold surpasses its previous highs?

When gold reaches new highs, algorithms recognize the momentum and lack of upward resistance, which can drive the price even higher with more buying and limited selling.

Q: Why did Lion Town Resources reject Albemarle's bid in the lithium sector?

Lion Town Resources considers Albemarle's $250 per share bid undervalued, particularly given the recent softness in companies exposed to the lithium sector.

Q: What progress has Lion Town reported on its Kathleen Valley Project in Australia?

Lion Town states that the Kathleen Valley Project is being de-risked as mining operations start up and construction remains on schedule, with the first output expected in mid-2024.

Summary & Key Takeaways

• The gold price broke the $2000 per ounce mark twice in the past amid global COVID-19 pressures and Russia's invasion of Ukraine.

• Market expert David Morgan explains that once gold surpasses its previous highs, buying momentum can drive it even higher.

• In the lithium sector, Lion Town Resources rejected Albemarle's bid of $250 per share, considering it undervalued amidst recent softness in the industry.