Top Gold Stocks To Watch This Month
Over the past few weeks, gold has enjoyed a remarkable rally owing to the turmoil in the financial markets. If Bloomberg Intelligence is to be believed, it’s not over yet. In its commodities update for the month of February, Bloomberg Intelligence stated that the weakness in the Chinese economy and decline in bond yields are two main factors.
It went on to state that gold prices might hit as much as $1700 an ounce this year. That honestly wouldn’t be out of the question seeing what happened earlier this year already. Gold price per ounce managed to break above $1,600 in January and continues to trade above $1,560 for the time being.
Let’s also not forget that the coronavirus has continued to created volatility across the board. One day the market’s up in arms as new cases are confirmed. The next day “concerns have subsided.” This market uncertainty has made things increasingly erratic. In such a situation, safe-haven stocks have performed well. So it’s worthwhile to consider gold stocks to trade in my opinion. Here is a closer look at four companies that could buck the gold trend.
Gold Stocks In The News: Barrick Gold Stock
One of the gold stocks that could be worth considering in the middle of this gold rally is that of Barrick Gold (GOLD – Free Report). On Tuesday, the Chief Executive Officer of the company Mark Bristow went after fund managers. He alleged that the fund management industry has a newfound zeal to not invest in companies that did not satisfy their environmental and social responsibility criteria.
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He went on to stay that Randgold, which was sold off to Barrick, had always been aware of the critical importance of a social license. Investors could keep an eye on this stock and see if fund managers actually change their minds. Barrick Gold stock has been on the move for the last 2 sessions. Shares jumped from $17.63 to over $18 on Wednesday.
Something to monitor right now from a technical perspective are historic levels. Take a look at the chart above and you’ll see that the 50-day moving average (yellow line) continues to act as a level of support. Barrick Gold stock tested this in December, again in January, and then once again this week. Each time, support has held while shares steadily rise. Assuming the sector continues its move, this could be an important thing to factor in if you’re looking at GOLD on a day-to-day basis.
Top Gold Stocks: IMC International Mining
Once again IMC International Mining (IMCX) (IMIMF – Free Report) has made fresh highs this week. Shares of the exploration and development company hit $0.435 on the Canadian exchange and $0.34 in the US. Its 100% owned Bullard Pass Property in Arizona has been the center of attention recently. It could also have untapped potential. In fact, in an amended and restated NI 43-101 Technical Report, the author suggests that the Bullard Pass property is a “property of merit and further exploration is warranted.”
Further to this, junior gold stocks, in general, have been performing well this year. It’s helped push related stocks along with it. Right now the company has staked 22 claims on the property and has staked additional claims to increase it to 171 claims.
Not to mention that some of the leading mining companies in the world have also seen that the Bullard property could hold significant opportunities for metal production. Based on the overall market move, investors continue to keep IMC International Mining on the watch list this quarter.
Gold Stocks To Watch: Endeavour Mining
Another gold stock that deserves attention from investors is Endeavour Mining (EDVMF – Free Report). It actually declined on the back of the latest comments from the mining minister of Burkina Faso. The minister revealed that the gold production in the country fell in 2019 due to attacks on miners in the country and associated security issues. After these comments, the stock fell by as much as 5.1%. Stocks of Teranga Gold, Iamgold and Roxgold declined as well.
However, this week, the company has managed to recover a bit. In a similar fashion to Barrick Gold stock, Endeavour has been trading around its 50-day moving average. The stock broke below this level in December but managed to bounce off of its 200-day average, acting as support. This week we saw shares hold the line at the 50-day. With the increased trading volume on Wednesday, this could be one of the gold stocks to watch in the short term.
Gold Stocks To Buy [or Sell]: B2Gold
Last but not least, it is B2Gold Corp (BTG – Free Report) that has gone on an impressive rally. This came after it announced promising results from its Gramalote Ridge Project joint venture. The joint venture is with AngloGold Ashanti Ltd. (AU – Free Report). The company announced that there is potential to recover as much as 143,000 tons per day and process 30173 tons per day. The stock rallied by 10% since then.
For the time being, B2Gold has held its overall uptrend for the year. Thanks to this and recent developments, the gold stock has attracted the analyst community as well. B of A Securities holds a Buy rating on the stock and upped its price target to $6.30. BMO Capital boosted its target to C$7.25 from C$7. Furthermore, Cormark Securities increased its C$6.75 target to C$7.
The biggest factor will be the general mining industry as a whole. As we’ve seen, even though gold has maintained a relative uptrend, during times of major market surges, gold has slumped a bit. That wasn’t the case on Wednesday, however, it’s something to keep in mind.
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