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Aussie gold miner Evolution Mining is a traders’ favourite for playing as a gold price proxy. The gold price performed strongly this year as US economic data steadily deteriorated, pushing the likely next Federal Reserve rate hikes into the second half of the year. Gold, which trades as a good proxy for zero-coupon bonds and disillusionment with global central bank monetary policy, looks like it still has plenty of upside, at least until US economic data starts to significantly improve.
Evolution Mining shares had a strong technical break out on 21 April, and is in a new uptrend as of 28 April as the Ichimoku Cloud just turned green. The Senkou Span A (the average of the blue and red lines pushed forward 26 days) has risen above the Senkou Span B (the average of the 52-day high and the 52-day low). A key test for the stock will be whether it can break through its early February resistance at around A$2.03, and a close above this level will be strongly bullish for the stock.