More News From Hong Kong Triggered Momentum For Gold Stocks In December
December started things off just as it finished November as far as gold stocks were concerned. The yellow metal opened higher on December 2nd continuing a 4-day rally that began last week. It was an interesting start for gold in December. Prices initially headed lower after data from China showed upbeat manufacturing activity. But as U.S. manufacturing data came out, prices pared early losses.
“A sudden rise in risk aversion among market participants on Friday allowed the gold price to gain by a good $10 to $1,465 per troy ounce in a matter of hours. Relatively good Chinese data are causing the gold price to correct again as the new week gets under way,” said Daniel Briesemann, an analyst at Commerzbank, in a note.
What also helped gold stocks rebound early on were U.S. stocks. Shares of major indexes traded lower on Monday. This, in turn, provided some support to head to gold as a safe haven option. Yields also rose as treasury yields sold off, which could be a headwind for gold if this situation continues.
Nonetheless, a number of mining and gold stocks continued higher on Monday to start December in the green. This week will also see U.S. employment figures coming out as well as nonfarm payrolls coming due at the end of the week. As the world watches for potential U.S. presidential impeachment-related updates, it could become a boon for gold prices. With that in mind, here are 3 gold stocks to watch this week.
Gold Stocks To Watch: Barrick Gold (GOLD)
First on this list is one of the more popular gold stocks to watch, Barrick Gold (GOLD Stock Report). Shares of the gold stock approached significant technical levels on Monday. GOLD stock inched closer to its 50-day moving average of $17.09. The stock came close to testing this level during early morning trade after hitting an initial high of day at $17.02. Despite this, trading volume was slightly lower compared to that of its previous week.
At the end of November, the company came out with news that boosted sentiment for the company. The company completed a divestiture of a 50% stake in Kalgoorlie Consolidated Gold Mines. The Western Australian company ownership was divested to Saracen Mineral Holdings Limited for a cool $750 million in cash.
Thanks to strong earnings, the company has upped its quarterly dividend by 25% as well. Shareholders of record as of last Friday will enjoy a $0.05 dividend for the quarter. This is up from $0.04 previously.
Gold Stocks To Watch: Sibanye Gold Limited (SBGL)
Next on this list of gold stocks is Sibanye Gold Limited (SBGL Stock Report). This was one of the top gold stocks discussed last week as its bullish 2019 continued. That extended even further on December 2 with shares reaching new 2-year highs of $8.24. Unlike GOLD stock, Sibanye has broken above all major technical levels as trading volume persists at above-average levels to start the month.
There hasn’t been much on the news-front from the company as of late. However, the rising price of gold could be a good sign for those watching the sector and SBGL stock. It should also be noted that in October, the company guided its full-year South Africa gold production would come in toward to lower end of its original guidance. But assuming gold prices remain high, it could still yield a significant year for the company. Keep that in mind because if gold prices dramatically fall, it may become a huge headwind for Sibanye.
Gold Stocks To Watch: Yamana Gold (AUY)
The final gold stock to watch, Yamana Gold (AUY Stock Report) has headed higher at the start of December. In fact, where many gold stocks were in a 4-5 day uptrend, AUY stock has been bullish since early November.
Furthermore, for the entire year, shares have jumped significantly. If you look at a chart, the gold stock started the year off at $2.37. It saw lows of $1.78 in May. After that, Yamana stock didn’t look back and managed to trade at levels it hasn’t seen since last January.
[Read More] 2 Mining Stocks To Watch Before The New Year
The company came out with more updates last week. Yamana reported that it had identified new high-grade mineralization at its El Penon and has the potential to extend the mine life of the site. The company also explored its Minera Florida location citing new veins at a better-than-life of mine grade.
“We are making good progress at Minera Florida in several different areas of the property,” Henry Marsden, Senior Vice President of Exploration at Yamana, “And while it often takes time for an exploration program to bear fruit — our Jacobina mine being a prime example of this — we are confident that the potential provided by the property consolidation completed in 2017 at Minera Florida will translate into significant new mineral reserves and mineral resources.”
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