SLV - Gold pushes past $2000 miners gain as investors seek safe havens

2023-05-02 18:50:43 ET

Gold mining stocks posted broad gains along with the price of the metal Tuesday, as investors flocked to safe havens from the fallout over First Republic Bank's failure and the Federal Reserve's upcoming meeting, where another interest rate hike is expected.

Front-month Comex gold ( XAUUSD:CUR ) for May delivery closed +1.5% to $2,014.30/oz, its best settlement value since April 13 and biggest one-day dollar and percentage gain in a month, while May silver ( XAGUSD:CUR ) settled +1.6% to $25.404/oz, its highest settlement since April 14.

Some of the day's top gainers included New Gold ( NYSE: NGD ) +7.7% , Harmony Gold ( HMY ) +7.5% , Equinox Gold ( EQX ) +6.1% , Iamgold ( IAG ) +4.4% , Kinross Gold ( KGC ) +4.4% , Wheaton Precious Metals ( WPM ) +4.3% , Barrick Gold ( GOLD ) +4.1% .

Osisko Gold Royalties ( OR ) +5.8% after announcing a joint venture agreement with Gold Fields ( GFI ) that fully funds its Windfall project ; GFI closed +6.7% .

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( FGLD ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

"Concerns that First Republic's business practices were not much different than those at most banks today are sending regional bank valuations plummeting and prompting investors to flood into safe havens like gold ," Gold Newsletter editor Brien Lundin told MarketWatch .

The gold market is telling us that the "Fed is close to ending its tightening cycle, and that bond yields will remain under pressure as economic growth slows down," according to Ned Davis Research analyst Tim Hayes.

More analysis from Seeking Alpha:

• Opportunity In Gold Stocks That Most Will Miss
• Gold: Once More On To The Bridge, Dear Friends, Once More
• Why Gold Should Be Your First Portfolio Pick In A Recession

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