Are Gold Prices Set For New Highs This Week?
We can’t argue with the fact that we are living in unprecedented times. If you have been paying attention to the market, the price of gold and gold stocks have appreciated significantly. But where does that leave the yellow metal in the future? Analysts at Bank of America and Goldman Sachs are expecting gold to make new records within the next 18-24 months. Goldman has been preaching to stock market participants, stating that gold is the ‘currency of last resort’. The prestigious investment bank indicated that it’s worth buying gold, the safe-haven asset amid market panic over the coronavirus pandemic.
The latest figures from the US Labour Department showed that 36 million Americans filed for unemployment benefits. Money printing by central banks and vast state stimulus packages rekindle the interest in buying gold once again.
Gold price has climbed more than 50% in the past year to $1760.95. This leaves investors looking for cheap gold stocks to buy. While it is increasingly unaffordable to buy gold bars, that doesn’t mean there are no more opportunities for investors. Last week, we saw a strong close for gold stocks. Here are some gold stocks to consider.
Gold Stocks To Watch #1: Kinross Gold
Toronto-based Kinross Gold (KGC Stock Report) reported its first quarter earnings on May 5. Its profit surged more than 50% during the quarter due to higher production and realized gold prices, sending the share price to its 5-year high. Even though there’s no further announcement from the company, KGC stock continued to climb last week. This could be due to the surge in gold prices.
Kinross is a mining company with strong fundamentals. The company’s ample liquidity and healthy capital structure allows it to improve net margins amid higher gold prices. Kinross’ diverse portfolio of mines has exceeded production targets in the last eight years continuously. Besides, the favorable foreign exchange rates and fuel prices are likely to provide additional support, partially offsetting the company’s incremental costs. Hence, the bullish outlook for gold and another quarter of strong earnings might continue to push KGC stock higher.
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Gold Stocks To Watch #2: Barrick Gold
The world’s second largest gold miner, Barrick Gold (GOLD Stock Report) has seen shares risen by 56% this year. The Toronto-based company currently operates mines in 12 different countries. It was reported that Barrick had 71 million ounces and 13.5 billion pounds of proven and probable gold and copper reserves as of the end of 2019. With gold prices surging amid the pandemic, Barrick Gold plans to take advantage of lower copper prices and higher gold prices to make an acquisition in the sector.
GOLD stock has appreciated more than 50% since February. Despite the recent surge in their share prices, the attention should be on the price of gold itself. The global economy continues to look gloomy, with no end in sight to the Covid-19 situation. Gold prices are expected to achieve new highs. This gold stock is following a similar pattern to the gold price itself. Despite the impressive gains so far, we think there remains room for further price growth. Barrick gold stock may be worth the attention this month.
Gold Stocks To Watch #3: Great Panther Mining
Another gold stock that deserves investors’ attention is Great Panther Mining Limited (GPL Stock Report). That’s due to highly positive announcements made by the company on 14th May 2020. The company reported that it has secured $14 million in bought-deal financing to fund near-mine and regional exploration programs at its Tucano gold mine. Great Panther is also planning to restart its Mexican operations within this month after suspending their mining operation since the beginning of April. Also, the Tucano gold mine in Brazil is continuing to operate at full capacity with strict coronavirus protocols in place. That said, it has currently not been subject to any government-imposed restrictions in response to the outbreak.
Great Panther has announced the first quarter results for 2020, recording $48.1 million in revenue. This is an increase of 188% over the same period last year. The stronger than expected production in gold is highly positive to the company. While second quarter results may be impacted by the temporary suspension of the Mexican operations, the impact is one-off. The rise in gold price could produce a more sustained boost to the company’s performance for the rest of the year. GPL stock may be one to watch in May.