Gold Stocks Are Rallying After US President Trump’s Latest Comments
On Tuesday morning, U.S. President Donald Trump said that “In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right,” Trump told reporters in London. With the U.S. general election still about a year out in November 2020, speculation continues to fuel markets.
But that could be big things for certain sectors like mining and other safe-havens. Furthermore, the veil of uncertainty grows even further. Trump stated that he has no deadline for a deal and it might be “better to wait” for now. The two global superpowers have imposed billions of dollars in tariffs on each other since the beginning of last year. This has sent financial markets into a very choppy 2019 year. There’s even another upcoming tariff deadline to keep in the back of your head.
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December 15 marks the date that the U.S. will add more levies on China exports if there’s no deal. Assuming Trump’s comments are to be taken seriously, then the likelihood of more tariffs could be high. For gold bugs, this is also music to their ears.
Gold Stocks To Watch
With the U.S. President trying to “fight for the people” after China was “ripping of the U.S. for many, many years,” we’ve seen a surge in gold prices in 2019. VanEck Vectors Gold ETF (GDX Report) rose by as much as 46.6% this year and it still up considerably since pulling back from its $30.96 highs. With most gold stocks near critical resistance levels right now, a news catalyst like this could be just the thing to bring attention back to precious metals.
Harmony Gold Mining Company (HMY)
Shares of Harmony Gold (HMY Stock Report) shot up during premarket trading on Tuesday. Fueled by more geopolitical unrest, the gold stock reached highs of $3.19 during early trading. This is up noticeably higher than its previous close of $2.96. With HMY stock, the 50-day moving average sits right around $3.17 so it will be interesting to see if it can break through and hold higher levels.
The gold stock has struggled to get back to its 2019 high of $3.86 amid further trade-deal speculation. But overall, Harmony has seen a strong 2019. Shares currently trade over 70% higher than where the gold company started the year.
Barrick Gold Corporation (GOLD)
Another premarket mover in gold is Barrick Gold Corp (GOLD Stock Report). On December 3, it was another one of the gold stocks to watch. GOLD stock‘s 50-day moving average sits around $17.10. Shares of Barrick traded as high as $17.14 during premarket trading on Tuesday. What’s more is that the company is also coming off of a $750 million, all-cash deal. Barrick sold its 50% stake in Kalgoorlie Gold Mines to Saracen Mineral at the end of November.
“The sale of our non-operating interest in KCGM represents the first step in our plan to realize in excess of $1.5 billion from the disposal of non-core assets by the end of next year. While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations,” said Mark Bristow, Barrick president and chief executive officer in a November 17 press release.
Sibanye Gold Limited (SBGL)
As one of the top gold stocks to watch in 2019, Sibanye Gold Limited (SBGL Stock Report) continued its year-long rally on Tuesday morning. September marked the last time SBGL stock broke through key resistance levels. Since then, the gold stock has run rampant. On December 3, Sibanye made yet another new high; $8.60 in early morning trading.
At these levels, SBGL hasn’t traded this high since May of 2017. Despite its performance, analysts from Morgan Stanley downgraded the stock to “Equal-Weight” after the company guided lower for its full-year Africa gold production. But will Trump’s latest series of comments send it even higher before 2020?