Can Top Gold Stocks Continue To Move Higher During The Second Wave Of COVID-19?
Gold prices traded higher in Tuesday’s trading session. In fact, the previous metal’s price traded above $1,800 for the first time since 2011. That came as fears of a second wave of the coronavirus grew.
There’ve also been geopolitical tensions growing in China and of course, the trade war is an additional catalyst. With gold prices crossing over the $1,800 an ounce level, investors are watching gold stocks closely.
Do all these catalysts mean that investors should start buying gold stocks now? Well, if you are looking to do that, there are a number of options available. There are gold ETFs, and alternatively, specific gold stocks to invest in. There are also mining stocks that are well-positioned to capitalize on this upswing of higher gold prices.
Investment Banks Bullish On Gold
Some of the top investment banks in the world have taken a bullish stance on gold. These include Citi (C stock report), Goldman Sachs (GS stock report), and Bank of America (BAC stock report). Recently Goldman raised its expectations for gold prices.
The investment bank now estimates gold prices to reach $1,800, $1,900, and $2,000 within the next 3,6, and 12-months respectively. HBSC also reported that the increase in unemployment and fiscal stimulus measures could result in a bigger move for gold prices. With that being said, here are two top gold stocks to watch during the COVID-19 Pandemic.
Top Gold Stocks To Watch : Barrick Gold
The first gold stock on the list is Barrick Gold (GOLD Stock Report). This gold stock has been at the forefront of this gold rally these last couple of months. The company’s extensive portfolio of mines makes it one of the best gold stocks to watch in 2020.
The management’s efforts to continue to strengthen its balance sheet has been impressive. The gold company reported that it had recently sold some of its non-core assets in an effort to reduce debt on its balance sheet.
In doing so, this reduces the risk for investors as the company is not having to depend on heavy debt to fund its operations. Though some bears think that gold prices are too high, investors with a higher risk tolerance may continue to buy shares of Barrick Gold stock because of the company’s earnings growth potential. These reasons can potentially make Barrick Gold one of the top gold stocks to watch during the COVID-19 pandemic.
Top Gold Stocks To Watch: Kinross Gold Corporation
Next on the list of gold stocks to watch is Canadian gold miner Kinross Gold (KGC Stock Report). This is been one of the best performing gold stocks in the market in recent months. KGC stock price has nearly doubled since the market sell-off in March due to the coronavirus pandemic.
Recently, Krinoss Gold announced that it had solved the dispute with the Mauritian government and reached a settlement agreement. The company is expected to pay nearly $25 million to settle the disputes over tax exemptions, fuel usage, and mining licenses.
Since resolving this dispute, KGC has announced they’ve secured a 30-year mining exploration license for the Tasiast Sud project. With the potential benefits from this new agreement, the question is, can we expect to see Krinoss Gold stock continue to be a top gold stock to buy in 2020?
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