Are Gold Stocks On Your Watchlist This Week?
Prices of gold stocks and precious metals usually climb when uncertainty grows. We don’t need experts to tell us that tensions are running high. With an accelerating number of coronavirus cases recorded, nationwide protests, and a soaring unemployment rate, investors are being very cautious of how the stock market will react going forward.
Gold prices have been tilting upwards, just a few hundred dollars from historic highs. Now that we have the U.S.-China trade tensions back on the table, can we expect the price of gold to reach a new record high?
Does this mean that investors should start buying gold stocks? Well you can do that, but there are plenty of other options available for investors to gain exposure to the yellow metal. Maybe you have heard of gold ETFs. Alternatively, investors can also look for gold stocks to invest in or mining stocks that are well-positioned to rally amid the higher gold price.
Major Investment Banks Bullish On Gold
Many investment banks such as Goldman Sachs, Citi, and even Bank Of America have been bullish on gold. Goldman recently lifted its expectations for gold prices. The firm now forecasts gold prices to reach $1,800, $1,900 and $2,000 in the next 3, 6, and 12-month respectively. HSBC also suggested that a rise in unemployment and historic fiscal stimulus measures could signal a broader move for gold prices.
What Are Some Gold Stocks To Watch Right Now?
Considering that gold stocks seem to be picking up, we must not forget what happened in March. During the sell-off, investors cashed out their positions in many assets. Gold didn’t fare too well as a safe haven. That said, Covid-19 infection rate is soaring in the US, and now Brazil. Should investors look for gold stocks to buy amid rising uncertainties and slowing economic activities?
Top Gold Stocks To Watch In July 2020: Kinross Gold Corporation
Canadian gold miner Kinross Gold (KGC Stock Report) is one of the best performing gold stocks in the market. The stock has nearly doubled since the coronavirus market sell-off in March. Gold miners and streamers have seen a tremendous surge this year amid higher yellow metal prices. The trend for the traditional safe haven might be here to stay. This would raise gold miners’ earnings and ultimately benefit gold stocks investors.
Just recently, Kinross Gold announced that it had resolved the dispute with the Mauritian government and reached an agreement to settle. Under the agreement, the Canadian mining company is expected to pay around $25 million to settle disputes over tax exemptions, mining licenses and fuel use.
Since clearing the dispute, the company has managed to secure an expansion to its exploration license under the agreement. Kinross now has a 30-year mining exploration license for the Tasiast Sud project. Given the potential benefits from the new agreement, can we expect KGC stock to swing upwards in the near future?
Top Gold Stocks To Watch In July 2020: Barrick Gold
Another gold mining stock to watch is Barrick Gold (GOLD Stock Report). The company has been leading the gold miners’ rally for the last few months. Yet, GOLD stock has recently slid almost 10% from its highs in May. Given that the outlook of gold price remains rosy, should we scoop GOLD stock when it dips?
Unlike many mining stocks, Barrick is the industry leader in the sector. Its unparalleled scale and extensive portfolio of mines make it a powerful name in the industry. The management’s effort to strengthen its balance sheet has been nothing short of impressive. The company has sold some non-core assets in the recent past and reduced debt on its balance sheet.
That reduces the risk for investors as the company is not relying too much on debts to fund its operations. While some bears believe that the price tag is too high, high-risk investors will likely continue to accumulate shares of Barrick Gold stock because of the company’s superior earnings growth potential. This could make Barrick gold stock one of the best gold stocks to watch in 2020.