Recent weakness in the gold price has prompted volatility within the sector, despite the fact that it is trading well above historical levels. The substantial share price falls that some companies have experienced in recent weeks have far exceeded the potential impact of a slightly lower gold price.

As is the case with any sector that has experienced boom conditions, any sign of negativity can prompt vigorous profit-taking and disproportionate share price falls. But a strong bounce in the gold price overnight could prompt some buying from investors looking to take advantage of oversold stocks.