Top Gold Stocks To Watch Before Next Week
Between nonfarm payrolls and U.S. jobless claims this week, the uncertainty on the U.S. economy has reached a new level. Friday’s report includes only data through March 14, meaning it does not count the last two weeks of the month, a period that saw 10 million Americans file for unemployment insurance.
That could mean big things for gold. Seen as a traditional safe-haven, gold stocks have been climbing since mid-March. At the time, most of the sector pulled back as investors needed to cover margin calls and build up cash.
Despite this as the case back then, now is a different story. In fact, gold futures pointed to one of the strongest 3-day moves since the big jump back above $1,600 last month. So given this fact, the support behind a bullish gold price grows stronger.
Top Gold Stocks To Watch
Over the last few days, gold stocks have been consistently climbing. You name it, everything from large-cap stocks to penny stocks have seen an uptrend. The difference between the two is the overall percentage change. During times of strong uptrends, the smaller-cap and junior mining stocks tend to outperform the majors. So if that’s what you believe, then it may be time to start looking at a few lower-priced gold stocks
IMC International Mining
IMC International (IMIMF) (CSE: IMCX) is one of the top penny stocks to watch this year and rightfully so. Even during the March pullback, shares of IMC didn’t falter. Not only did they maintain a strong sideways trend and weather the storm, but this week IMCX (the Canadian listing) also reached fresh all-time highs at $0.52CAD.
[Read More On IMC] Top Gold Stock To Watch: IMC International Jumps On Acquisition News
What’s happened with this company recently could be a big driver to its momentum. Not only did the company complete its recent acquisition of Thane Minerals, but on a conference call, incoming Chairman Greg Hawkins explained that the Thane Cathedral Property is in a prime location. Located in the Quesnel Terrane, Cathedral sits between 2 established mines. One of the mines, Mt. Milligan, is owned by Centerra Gold and one of the leading gold streaming companies, Royal Gold (RGLD) has an interest in Centerra’s Mt Milligan project as well. I bet they’ll be hungry for more if gold prices are set to surge, too.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Next week the company is hosting a follow-up call. So, it will be interesting to hear what else this latest acquisition means for the company and for shareholders.
B2Gold (BTG) is another gold stock that has consistently moved up over the last few weeks. In fact, since March 16, shares are up 54.7% to date. What’s important to note is what B2Gold recently announced at the end of March.
The company reported that it resumed mining operations at its Masbate mine in the Philippines. Additionally, it also continued with mining and milling operations at its Fekola and Otjikoto mines in Mali and Namibia, respectively. B2Gold explained that the company “is working closely with national and local authorities and will be monitoring each site’s situation closely while ensuring the safe operation of its mines”
Given the current technical pattern of BTG stock, it appears that the $3.60 level could be a potential level of resistance right now. This is also where the 200DMA sits and where BTG stock failed to break through at least the last 4 out of 6 times it traded at that level. Given the current direction of gold prices, do you think BTG will be able to trade higher in April?
Sharers of AngloGold Ashanti (AU) continued to edge out gains on Friday. Since Wednesday, the gold stock has managed to move up by as much as 16.5% as gold prices were on the move. Earlier reports this week cited that gold operations in Africa have not been impacted by the coronavirus. Given the fact that AngloGold has mines there, it doesn’t come as a surprise that sentiment has seen a boost.
What also hasn’t come as a surprise is that the company, like other gold companies, withdrew its guidance for the year. In a press release from late last month the gold miner explained that due to uncertainties caused by the coronavirus outbreak, it has withdrawn its market guidance. Its mining activities will remain suspended in Argentina, South Africa, and Brazil due to government restrictions. but the rest of its mines will continue operating.
Its supply chain teams have placed orders to build increased safety stocks on critical items for operations. Similar to B2Gold, AngloGold has started to approach a major technical level. This time it is the 50DMA that could present the first level of resistance for the gold stock. Sitting around $19, this has been a level the 50DMA has acted as a consistent point of resistance on the AU chart. Considering gold’s upward trajectory, however, will AU managed to finally break its resistance in April?
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Full disclaimer here.
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