SLV - Precious metals miners on the move as gold touches $2000

2023-03-20 08:37:04 ET

Precious metals mining stocks rally after the UBS takeover deal for Credit Suisse failed to calm nerves, pushing gold prices past $2,000/oz for the first time in a year.

Gold prices have pulled back a bit after rising as high as $2,009, but Comex gold for April delivery currently +0.8% to $1,989.80/oz, and May Comex silver +0.6% to $22.605/oz.

Among pre-market movers: Harmony Gold ( HMY ) +3.9% , Anglo Gold Ashanti ( AU ) +3.5% , Gold Fields ( GFI ) +2.5% , First Majestic Silver ( AG ) +2.3% , Kinross Gold ( KGC ) +1.7% , Fortuna Silver Mines ( FSM ) +1.7% .

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

The takeover of Credit Suisse, which is set to wipe out holders of its riskiest bonds, " has introduced a new source of uncertainty ," Macquarie's Marcus Garvey said in a note. "The longer uncertainty rolls on, with neither market fears being wholly calmed nor a full-blown systematic crisis unfolding, the higher gold prices should be able to trade."

The gold market's attention is set to shift to the Federal Reserve meeting that concludes Wednesday, where analysts say a more dovish outlook even while inflation remains hot could push gold even higher.

"We believe the mounting of global financial instability is likely to drive gold prices toward its all time high of $2,075/oz in the coming weeks," Fitch said in a note.

Comex gold closed last week at its highest since April 2022 and jumping 5.8% for the week in its best one-week percentage gain since nearly three years .

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