Investors Continue To Flock To Gold Stocks As A Safe Haven
As soon as concerns subsided about the coronavirus outbreak, they’ve returned even stronger. More than 170 people have died and as of this morning, over 7,800 cases have been confirmed in China. Worldwide there have been more than 8,000 cases confirmed. But that was just the start as we’ve seen today.
Some 6,000 tourists have been held captive on a cruise ship in Italy. No, there were no signs of pirates. It was due to “sanitary protocol” after concerns rose of the health of an individual traveling on the ship.
While this has emerged as a potential risk to the global economy, investors have steadily hedged with gold stocks as the preferred choice. Today, gold futures broke above $1,590 since January 8. That was when gold broke to highs of $1,613.30. Obviously, this move in the price of gold has the investment community looking for top gold stocks to buy right now.
“Concerns over the coronavirus continue to rise as the WHO is now considering an emergency pronouncement, and news headlines will continue to focus on further travel restrictions, which should continue to support gold as will the news of temporary store and factory shutdowns,” said Stephen Innes, chief market strategist at AxiCorp, in a note.
Gold Stocks To Watch
Gold held gains after the Commerce Department said the U.S. economy grew at a faster rate than expected. The initial survey was 1.9% growth with the actual coming in at 2.1% annualized in the fourth quarter. Shares of gold miners rose on January 30. Kinross Gold (KGC – Stock Report) reached highs of more than $5 a share further extending gains from Wednesday.
Kinross recently closed on a $283 million acquisition of a development project in Russia. Previously owned by N-Mining Limited, its Chulbatkan project is estimated to have 3.9 million gold ounces in indicated mineral resources. There are also some 80,000 gold ounces in estimated inferred mineral resources for the project. That’s initially based on the company’s due diligence work and internal analysis.
Other gold stocks like Gold Fields Limited (GFI – Stock Report) continue higher after Wednesday’s surge. The miner reached highs of $6.50 to bring its 2-day move to 8%. The company reportedly hired RBC to investigate selling 30% of its Northern Chile Gold Project. Two banking sources told the media outlet, Reuters, that the second round of offers could be due in the coming weeks.
Last month the company reported that the Atacama Environmental Assessment Commission approved the environmental impact study of its Salares Norte Project in Chile. This was a critical next step for Gold Fields in evaluating its decision for construction on the site.
“The company will now formulate a funding plan, update the feasibility study completed earlier this year and proceed to a construction decision during H1 2020,” says Nick Holland, CEO of Gold Fields.