NEM - Top Gold Stocks Head Higher On 4/20
These Gold Stocks Reached New Highs On April 20th
On a day typically associated with cannabis and marijuana stocks, precious metals are smoking right now. More specifically, some of the top gold stocks are reaching fresh highs for the year; some even record highs. But you wouldn’t have guessed that to be the case if you looked at the price of gold. While it recovered from last week’s downturn, it hasn’t been explosive on Monday. As of the end of the lunch hour, gold prices traded just over $1,710 with the high being $1,718.40.
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Gold stocks are “where it’s at” on 4/20. The current economic climate that has central banks flooding stimulus money into the markets boosting government debt into the stratosphere, and still no end in sight to COVID-19 are all giving reasons to hedge with gold. A big contributing factor to gold mining stocks this week is the dip in oil prices.
Let’s face it, it takes money to make money and when it comes to mining, power is key. I don’t mean this in the figurative sense of the word. Quite literally, mining companies need consistent power supplies in order to do the dirty work. Oil and gas are one of these sources of power.
While many companies had to cut production or pause operations, it won’t be those figures that investors will be looking at this year. Rather, the capital expenditures will be key. How much money did it take to pull out that gold nugget? With lower oil prices, this could make for an ideal scenario for cost savings.
Top Gold Stocks To Watch: Barrick Gold
As one of the leading gold companies, Barrick Gold stock (GOLD Stock Report) jumped to new 2020 highs on Monday. Shares reached a high of $25.47 during the morning session. While these aren’t close to its all-time high of $55.95, it is a level Barrick gold stock hasn’t seen since 2013. In fact, in April of 2013, the stock was reaching the $25 mark on the way down from its epic climb. This time around we’ve seen Barrick gold stock as it’s on the incline.
Recently analysts took a closer look at the company. UBS raised its price target to $28. Previously the firm held a target of $22 on Barrick gold stock. It also maintained a buy rating. Meanwhile, analysts from Barclays were a bit more pessimistic in their rating. They cut their rating to “Equal Weight” from “Overweight”. However, they did up the price target on Barrick gold stock to $25 from $20.
Top Gold Stocks To Watch: Newmont Corporation
Newmont gold stock (NEM Stock Report) came within striking distance of its 2020 high of $61.53 from 4/14. That, coincidentally is also $10 away from the stocks’ all-time high of $71.54 from 2011. While Newmont gold stock hasn’t traded this high since February of 2012, it’s also important to note updates made by the company.
[Read More] Are These Top Gold Stocks To Watch Right Now?
Last week, Newmont announced some good news. The company’s CEO told Reuters that it would resume operations at some of the 4 gold mines in Canada and South America. These were previously closed in March to comply with local government regulations regarding COVID-19. Needless to say, CEO, Tom Parker explained that “Newmont is looking to carry out a phased resumption of mining activities “in those countries where restrictions have been lifted.”
Top Gold Stocks To Watch: Kinross Gold
On the lower-priced side of things, Kinross gold stock (KGC Stock Report) rallied back from Friday’s lows of $5.70. By the lunch hour, KGC stock reached highs of $6.30.
This came as the price of gold inched higher on Monday. Last week Kinross gold stock reached a new 2020 high of $6.64 establishing it as one of the top gold stocks to watch on April 14th.
We’re talking about levels not seen in Kinross gold stock since June of 2013. In addition to piggybacking off of the price of gold, Kinross also benefited from the analyst community. Namely, Scotiabank upgraded Kinross gold stock to “Sector Outperform” from “Sector Perform”. It also increased its price target on the gold stock from $7.42CAD to $10.58CAD.