Are You Looking For Gold Stocks To Buy Now?
The price of gold has surged this year and gold stocks are on a roll. But the last few months have seen gold prices trend sideways more than up. After the latest series of comments made by President Trump, the precious metal has begun to make moves yet again.
At its current price of $1,479, gold is still up over $200 in comparison to this time in 2018. So it’s no surprise to see investors start circling the waters like sharks trying to time the next trend in gold stocks.
What To Watch With Gold Stocks
After such a surge, we likely could see some consolidation in gold prices. But as with much longer-term bullish trends, this could be an intermittent pullback in a much larger uptrend according to some. Earlier this year, gold traded below $1,300 before it jumped above $1,550 during the months to follow.
[Read More] Can Gold Stocks Move Higher Before Next Year?
Now, considering the recent global angst created by the US/China trade war, it could be time to watch gold stocks once again. That’s because gold has a tendency to move on geopolitical uncertainty as well as changing U.S. interest rates. In the latter, lower rates typically drive gold higher in value. The opposite tends to result in the opposite.
The reason for this is because gold doesn’t necessarily provide a true yield. Lower interest rates lower the “opportunity cost” of holding onto precious metals. The Fed cut rates 3 times this year already. Right now it also seems that the Fed wants to see what happens in 2020.
Gold Stocks To Watch Before Next Year
As gold continues to etch out a trading channel, several mining stocks and gold stocks have begun to attract attention.
Barrick Gold (ABX) (GOLD)
This gold company was almost destroyed by a debt load the size of some countries GDP’s. The $13 billion in debt shook some investors to the core. However, several big asset sales in addition to a recovery in gold prices have allowed the company to get back on track. The free cash flow of Barrick (GOLD Stock Report) (ABX) is now a sticking point for some.
The main reason for this is based on the company upping its current quarterly dividend. Keep in mind that Barrick is a behemoth. It previously merged with Randgold Resources. But this wasn’t the only big deal in mining industry buyouts. Kirkland Lake just announced its acquisition of Detour Gold. Furthermore, the came after Newmont Mining (NEM Stock Report) purchased Goldcorp. This M&A trend isn’t expected to slow down either.
Kirkland Lake Gold (KL)
For Barrick, the company already has established sound footing. It owns the top 10 nines on the planet right now. For Barrick or possibly Newmont to buy out other companies like Kirkland (KL Stock Report). That’s also considering Kirkland’s latest purchase.
The company recently extended its high-grade visible gold mineralization of its Fosterville Swan Zone. Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “We have an extensive exploration program at Fosterville covering four main target areas, Lower Phoenix down-plunge of Swan, Cygnet, Harrier and Robbin’s Hill.”
“We have not yet seen the ultra-high grades you get at Swan, but it is early days and we remain optimistic. Harrier South will continue to be a high-priority target with extensive drilling to continue into, and throughout, 2020.”
Despite progress, Kirkland hasn’t has a great last few weeks. This was mainly due to the fact that analysts downgraded the stock. Many had also cut price targets. However, since dropping to lows of $37.75 before Thanksgiving, KL stock managed to rebound into December as gold stocks rallied.