Top Gold Stocks To Watch This Week
The coronavirus epidemic has wrecked markets all over the world. Meanwhile, gold prices have soared. Gold futures rose by as much as 1.78% earlier today and it remains to be seen how long the rally holds. In this sort of situation, it could be useful for investors to have a look at gold stocks as well.
over the last few weeks, gold prices have held and overall uptrend. Even as prices dropped last week, gold maintained levels above its 50-day moving average (yellow line). This is an important technical level for traders to take note of. It can, many times, present a potential level of support. As we know, when support breaks down, so can a stock or in this case futures.
While prices didn’t break below the 50MA, they did test it once last week. Suggesting this could be a stronger level of support for gold, is this the bounce investors have been waiting for? On that note, here is a quick look at 4 gold stocks that could be added to the watch lists this month.
Gold Stocks To Watch #1 Yamana Gold
The first gold stock that could be considered by investors is that of Yamana Gold Inc. (AUY – Free Report). The stock has performed impressively since last May and has emerged as one of the top gold stocks to watch this year. In February, Yamana announced the launch of precious metals royalty company in collaboration with Orion Resource Partners.
Yamana Gold is going to sell its royalty to Guerrero Ventures in a deal worth $65 million. This is an important development for Yamana and one that could have far-reaching ramifications considering gold prices right now.
Gold Stocks To Watch #2 Harmony Gold Mining
On the other hand, Harmony Gold Mining Co. (HMY – Free Report) has emerged as another gold stock to watch in recent days. Since February 11, the stock has gained as much as 20%. But will investors take a look at this stock in the middle of the gold rally?
Last month the company announced that it is going to take over the remaining South African assets of AngloGold Ashanti. It is a significant development for the company. The news has sparked a lot of positivity around the stock leading up to last week. Now, at the start of the new month, shares of HMY stock have begun reversing that bearish trend. But the big question is whether or not it can continue.
Gold Stocks To Watch #3 Coeur Mining
Investors could also start tracking Coeur Mining Inc (CDE – Free Report). It recently received an upgrade from B. Riley FBR. The stock was upgraded from neutral to buy. It also saw a target price set at $7.90 a share. However, the upgrade could not help the stock much as it dropped along with other precious metals stocks.
Regardless of this, March is a new month. On March 2, the gold stock jumped over 10% from its previous close. This was the first big move Coeur stock saw in weeks.
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Roth Capital recently upgraded the stock to Neutral from Sell. It also lifted its price target to $5.50 from $5. However, Canaccord Genuity downgraded shares to sell from hold. Raymond James dropped its price target to $5.50 from $6. But it still maintains a Market Perform rating.
Gold Stocks To Watch: New Gold
Lastly, New Gold (NGD – Free Report) could also be put into the gold stocks watch list. That’s considering the recent events at the company. Last week New Gold announced that it has entered into a strategic partnership with the Ontario Teachers’ Pension Plan.
The pension fund picked up a 46% free cash flow interest in one of the company’s mines and has also agreed to convert it into a 46% joint venture by 2024. New Gold is going to be paid $300 million upfront. This came after the company reported that it is anticipating a productive 2020. The company sees gold production between 313k-343k with copper coming in between 75M and 85M pounds.
In a press release, Renaud Adams, CEO said, “With the release of our updated life of mine plans we now begin a new phase for the Company as we position Rainy River for profitable operations that drive free cash flow generation by the end of 2020 that will sustain over the life of the mine.”
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