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4 Gold Stocks To Take A Closer Look At This Week
Lately, gold stocks have been playing to the whims of the price of gold. While this is good news when gold prices go up, it’s not that great when they decline. That’s what the market has seen over the last few sessions. Earlier this week more optimism great from comments made regarding opening the U.S. economy back up. That continued after Dr. Anthony Fauci made new comments on Friday.
“I don’t want people to think that any of us feel that staying locked down for a prolonged period of time is the way to go,” Fauci told CNBC. He explained that the U.S. needed to conduct such extreme measures because COVID-19 was greatly impacting the country. He then reiterated that now is the time to begin to “seriously look at reopening the economy, reopening the country to try to get back to some degree of normal.”
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He also cautioned states against loosening social distancing measures too quickly. This has helped the market climb a bit more on Friday. While gold prices stumbled earlier in the session, it doesn’t look bad for gold during the afternoon session. Futures prices jumped back to the low $1,730’s after the lunch hour. In the meantime, there were several gold stocks to watch attempting to gain back some of the earlier losses from the week.
Gold Stocks To Watch: McEwen Mining
Shares of McEwen Mining Inc. (MUX Stock Report) have slipped for the better part of the last 2 weeks. However after hitting near-two-month lows on Thursday, the May 22nd session proved fruitful for the gold stock. MUX stock jumped from a low of $0.765 on Thursday to highs of over $0.85. on Friday.
This latest move comes as B. Riley lifted its price target on MUX stock. Previously, McEwen was given a target of $3.60. The firm upped the target slightly to $3.70. This is the first day MUX stock has climbed this much since reporting an earnings miss earlier this month.
Gold Stocks To Watch: Kinross Gold
However, Kinross Gold stock (KGC Stock Report) didn’t fair as well as MUX. While the 2-day slide didn’t necessarily continue on Friday, shares didn’t regain any ground either. On May 21, KGC stock reached lows of $6.94. On the 22nd, Kinross gold stock traded mostly sideways hovering around $7 for most of the session.
Much of this could have something to what the company just announced. The company announced that the strike by unionized employees at its Tasiast mine has been suspended at the request of the Government of Mauritania. The recent shutdowns not expected to materially affect 2020 production or the development of the 24k expansion.
Gold Stocks To Watch: New Gold
Unlike, the other two gold stocks, New Gold stock (NGD Stock Report) has been one of the few making new highs on May 22. Since the middle of March, we’ve watched, first-hand New Gold stock rally. This was right after the gold sector as a whole dropped to 2020 lows. For NGD stock, the price just made new 2020 highs of $1.23 a level not seen since last September.
Back in January, the gold stock reached a high of $1.07 but never managed to retest that until recently. Now that the gold stock has recovered and entered a new bull market, we look to 2019 levels for potential resistance and support.
[Read More] Are These On Your Gold Stocks List This Week?
Last August and September saw initial support around $1.15. So it’s no coincidence to me that NGD stock has settled at these levels but hasn’t broken much higher. In its last earnings report, the company cited that it has a strong liquidity position of $600 million.
Gold Stocks To Watch: Sandstorm Gold
Sandstorm Gold (SAND Stock Report) is another one of the gold stocks that has become more bullish in comparison to McEwen and Kinross gold stock. Sandstorm gold stock slipped over the last few days.
However, this came after SAND stock reached new 52-week highs of $9.02. So a correction after hitting milestones like that is to be expected. However, the pullback wasn’t nearly as aggressive as the previously mentioned companies. On Friday SAND stock managed to recover back to highs of over $8.75.
In its last update, the company provided an asset update and announced Sandstorm filed the prospectus supplement for the previously announced at-the-market equity program. In May, Sandstorm received its first gold delivery from Americas Gold and Silver Corporation under the Relief Canyon stream agreement. Americas Gold announced that the Relief Canyon Mine expects to reach commercial production by the third quarter of 2020. Relief achieved first gold pour in mid-February 2020.