FNV - Are These The Best Gold Stocks To Trade Right Now?
3 Gold Stocks To Watch Before The Weekend
Looking for gold stocks? Now might be a great time to put a list together. Why? If you have been following the recent trend that the shiny metals have seen lately, you’ll understand a bit more. Then when you consider all of the angst across global economies right now, the dots start connecting even more.
Over the last 9 days, gold has closed green every day but one. Though the action during the latest session wasn’t as high-flying as May 19, gold prices put in an impressive session. The market saw highs of $1,757.60 while volume remained on pace with the last few weeks of trading activity.
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What’s more, without any major rate changes in the near term, gold prices might continue to thrive. Futures prices for the metal then extended the gains after the latest round of Fed minutes were released from its April meeting. Minutes showed that Fed officials discussed being “more explicit” about the future path of interest rates.
The Fed’s benchmark interest rate stands in a range from 0 to 0.25%. But rumors of negative rates haven’t hurt things either. Some speculation began to arise after President Trump praised the idea. Furthermore, these negative interest rates would be another catalyst for precious metals.
“We are seeing with both gold and silver is precious metals continuing to respond positively to central bank and government stimulus, particularly [Federal Reserve Chairman Jerome Powell’s] recent comments about using all the tools at his disposal,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Best Gold Stocks To Trade [or fade]: New Gold Inc.
First on the list of gold stocks, New Gold Inc. (NGD Stock Report)., reached fresh 2020 highs on Wednesday. This came as the price of gold traded sideways for the majority of the session. As the “cheap gold stock” on the list, NGD stock fell to lows of $0.39 earlier this year if you can believe that. But ever since, it has been a V-shaped recovery. This week, it continued to break far-past its 200 Day Moving Average around $0.92. It also managed to reach a new 2020 high of $1.18.
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. 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.
Best Gold Stocks To Trade [or fade]: Yamana Gold Stock
When it comes to Yamana Gold stock (AUY Stock Report), it has been one of the top names in the sector this quarter. Shares have reached new 2020 and 52-week highs this month. On May 20th, Yamana gold stock jumped to $5.65 in early morning trading. AUY stock hasn’t traded this high since August of 2016 marking a major milestone for the stock.
If Yamana gold stock can break above $5.99 it will set a new 6-year high. At the precipice of the last big gold rush AUY traded as high as $20.59. This week the company provided an update on exploration results for the Jacobina and El Peñón mines. According to Yamana, results at both operations continued to show growth in mineral reserves and mineral resources through year-end 2019. The company also expects additional promising new exploration results in the first quarter of 2020.
Best Gold Stocks To Trade [or fade]: Franco-Nevada Stock
On the higher end, Franco-Nevada stock (FNV Stock Report) has come narrowly within striking distance of its own 52-week and 2020 highs this week. On Monday, FNV stock reached an opening high of $152.70. This came after premarket trading saw shares of the gold stock jump to $155.18. Analysts have remained bullish on Franco-Nevada. Last week, Deutsche Bank lifted its price target on the gold stock to $127. That was up 27% from its previous target. The bank maintains a Hold rating on FNV stock right now.
This month, Franco-Nevada entered into an agreement with SolGold PLC to acquire a 1% net smelter royalty for $100 million. This was with reference to all minerals produced from the Alpala copper-gold project in northern Ecuador.
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The Alpala project is owned by Exploraciones Novomining SA, which is held 85% by SolGold and 15% by Cornerstone Capital Resources Inc. The deal is set for completion once COVID-19 travel restrictions are lifted. In the interim, Franco-Nevada agreed to provide SolGold with a bridge loan of $15 million for a period of up to 8 months.