Westgold Resources share price ASX was in the limelight earlier on Wednesday as the stock recorded substantial gains. The WGX stock was the best performer in Wednesday’s session on the S&P/ ASX 200, climbing 9.09% to trade at $1.14 at the close.
WGX’s Achievement
Westgold Resources Ltd is an Australian-based gold producer and explorer based in Perth, Western Australia. The company also focuses on exploring copper and lead-zinc deposits. Westgold operates three mining centers in Western Australia, the Fortnum Gold Mine, the Cue Gold Operation, and the Meekatharra Gold Operation centered around the Bluebird Gold Mine.
Westgold Resources share price ASX has been on a strong rally for the past few weeks. The WGX stock has gained nearly 26% in price in the past week and more than 48% in the past month.
Westgold Resources has continued breaking records after the company achieved record mine production of 110,606 tonnes at 3.47 grams per tonne grade gold for the second quarter of the 2023 fiscal year at its Bluebird mine near Meekatharra.
As a result of the positive results, the company is set to accelerate underground exploration at Bluebird. According to the firm, the recent increase in output at Bluebird means that the site is likely to outpace Paddy’s Flat underground mine as its largest gold producer.
Gold Price Outlook
Investors have shifted their focus to the US Consumer Prices Index (CPI) report set for release later this week on Thursday. The report is expected to show some moderation in year-on-year prices in December. Traders are betting on a 25- basis point interest rate hike by the Fed in its upcoming policy meeting in February.
Ilya Spivak, head of the global macro at Tastytlive, said;
“If the data shows that inflation is softer, then gold might go north of the $1,900 level. However, it would be interesting to see if gold can get much traction beyond that.”
Gold is considered an inflation hedge but higher interest rates tend to dim the commodity’s allure and increase the opportunity cost of holding the non-yielding bullion.
As of the time of writing, spot gold was trading 0.40% higher at $1,884.48 per ounce, its highest level in eight months. US gold futures edged 0.66% higher at $1,888.60.
Westgold Resources Share Price Forecast
The daily chart shows that the Westgold Resources share price has been on a strong bull run for the past few weeks. The stock has settled above and slightly above the 50-day and 200-day exponential moving averages, respectively. It has also managed to remain above the 50-day moving average. Its Relative Strength Index (RSI) has been moving upward and is currently at 62.
Therefore, the WGX share price is likely to continue rising as bulls eye the resistance level at $1.485. On the other hand, a move past below the 50-day EMA will invalidate the bullish view.
