NEM - Gold Stock Prices Rally As Precious Metals Climb
Are These On Your List Of Gold Stocks To Buy Right Now?
The price of gold soared higher for the 3rd day in a row on Thursday. Gold futures jumped as investors took in the latest round of economic information from the labor market. U.S. unemployment data showed that those seeking jobless benefits rose 2.98 million last week. Once again, that number is higher than consensus estimates from economists polled.
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The expected number was 2.7 million, which also indicates that applications for unemployment compensation “peaked” at a seasonally adjusted 6.9 million in late March. That has fallen steadily over the past month. But as always, just because fewer are seeking unemployment benefits, it doesn’t mean unemployment isn’t growing. These data can be skewed as I’m sure many reading have already heard from or experienced job loss in the very recent timeframe.
Thanks to this, fear has spread across the market with investors flocking to safe-haven investments once again. During early morning trading on May 14th, gold futures reached highs of $1,746.50. While this is still far off its 2020 high, it does continue a 3-day, $46 move from Tuesday’s opening bell. But it isn’t just precious metals that are climbing aggressively higher. Gold stocks are soaring as well, on Thursday.
Will Barrick Gold Stock Retest 2020 Highs?
Thursday’s likely to be one of the sessions full of sector momentum; not news fueled catalysts. In line with this, shares of Barrick gold stock (GOLD Stock Report) jumped back above $27. During the last 4 consecutive session not including May 14, Barrick gold stock closed red. However, it’s important to note that the trading channel that formed back in late-April is still in tact for now.
If you look at the chart, you’ll see that Barrick gold stock price managed to firmly break above previous resistance around $25.13. Since then, Barrick’s stock price has traded between a low of $25.14 and a high of $28.50. Recent analyst ratings suggest continued bullishness around Barrick gold stock. Deutsche Bank maintains a Buy but raised its price target this month. Previously, its target was set at $25 but has been revised to $34.
Kinross Gold Stock Hits Fresh 52-Week Highs
While Barrick gold stock attempts to retest 52-week highs, Kinross gold stock (KGC Stock Report) just made new ones. Shares of the previous gold penny stock rallied to highs of $7.38 during Thursday’s early session. Over the last few weeks, Kinross gold stock traded in a tight range between $6.50 and $7.25 for the most part. It did dip as low as $6.37 at the start of May. However, the sideways trend has held for the last 2 weeks.
On Thursday, KGC stock jumped as gold prices pushed higher. The recent economic data and comments made by the U.S. Federal Reserve instilled a sense of concern among the market. It’s no coincidence to see the gold stock prices are rallying on May 14. Similar to Barrick, Kinross gold stock has continued to attract attention from analysts. This week, CIBC lifted its target to $9 while maintaining an Outperform rating on Kinross gold stock.
Newmont Gold Stock Flirts With 2011 Records
In line with Kinross, Newmont gold stock (NEM Stock Report) also made fresh 52-week highs this week. The stock hit a high of $67.10 on Thursday morning. Not only are these levels not seen in years but the last time Newmont gold stock even flirted in this range, it was around its record-setting move in 2011.
On top of this, Newmont added more gas to the fire with an update this week. The company announced that it will restart operations at its Penasquito mine in Mexico on May 18. This is following a government-mandated shutdown due to COVID-19.
The gold producer expects the start-up at the mine to take roughly two weeks before reaching stable production levels.
Alamos Gold Stock Rebounds In Early Trade
Shares of Alamos Gold stock (AGI Stock Report) mimicked Barrick gold stock’s movement recently. AGI has been on a gradual slide for the last 4 trading sessions. However, Alamos gold stock has held its overall trading channel that began forming in late-April. At the time, AGI was trying to break above $$7.50. But after 2 clear attempts, resistance was too strong with the way gold prices were trading.
However, with the last big push for the price of gold, Alamos stock price has maintained its channel between $7.59 and $8.59. This week Alamos announced that it expects to begin ramping up full operations at its Mulatos mine on May 18, 2020 . This follows the Mexican government’s declaration of mining as an essential activity.
Read more: Are Gold Stocks Heading For New Highs This Week?
“As with Island Gold, operations at Mulatos will be ramped up in a safe manner. To date, we have not had any confirmed cases of COVID-19 among any of our employees or contractors. We continue to follow strict protocols across our operations with our foremost priority being to protect the health and safety of our employees, their families, and our local communities,” said John A. McCluskey, President, and Chief Executive Officer.