With Coronavirus Cases Rising, So Are Gold Stocks
Gold stocks continued the climb that began earlier this week. Gold futures pressed on to post a gain for the week of 0.08%. Growing concerns over what is now being deemed, COVID-19 has impacted markets once again. Investors continue to weigh the potential global economic impact of the virus amid already growing global economic tensions.
Thanks to this, gold stocks have enjoyed further gains this week. What’s been interesting is watching how traders and investors play the “crisis”. One day the markets “shrug off coronavirus concerns” and the next, investors are fleeing to cash or safe-haven stocks like gold.
“Should the outbreak take a dramatic turn for the worse, perhaps by way of confirmation in the economic data, $1600 remains in reach from current levels considering that gold prices have yet to reach overbought levels,” said Han Tan, market analyst at FXTM.
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While this is true, the last time gold prices jumped beyond $1,600, the relatively parabolic move was shortlived. This time around we’re seeing a bit more consistency in the recent uptrend in gold stocks. The SPDR Gold Trust ETF (GLD ETF Report), iShares Gold Trust ETF (IAU ETF Report) and GraniteShares Gold Trust (BAR ETF Report) pushed to new February highs on Friday. This sentiment was echoed by individual gold stocks as well
Top Performing Gold Stocks
Some of the biggest moves from gold stocks today came from many of the most popular gold stocks to watch this year. For instance, Sibanye Gold (SBGL Stock Report) hit fresh, 52-week highs on Friday. The gold stock soared to highs of $11.50 during the afternoon session on February 14. This Valentine’s Day move came after analysts at RBC upgraded the stock this week.
The firm boosted Sibanye Gold stock to Outperform. Previous to this, RBC rated Sibanye at Sector Perform. Other companies like Sandstorm Gold (SAND Stock Report) broke out to new February highs at the end of the week. Boosted gold prices helped build investor confidence as Sandstorm gold stock has managed to claw back from 2020 lows of $6.42.
This comes just days after the company reported record 2019 results. It also has plans to uplist to the New York Stock Exchange. Sandstorm currently trades on the NYSE American exchange. However, according to the company, it received approval from the exchange to transfer to the formal NYSE. Both CIBC World Markets and National Bank raised price targets on the stock. The former boosting its target fro m$11.25 CAD to $11.75 CAD and the latter, $11.25CAD to $11.50CAD.
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