Gold Stocks To Watch In August 2020
I hope by this time you’ve come to find that gold is on fire in 2020. August marked the first time gold made new, all-time highs since 2011. Along the same line, some of the top gold stocks also surged to new levels. Late last week we saw prices of the precious metal slip a bit in light of an upbeat outlook for the global economy.
However, if you checked out some headlines on gold, you’ll see one of the most famous investors in history started buying gold stocks; namely Barrick Gold stock. Following the move for Berkshire Hathaway late Friday, gold and many gold stocks started taking off. Barrick, in particular, reached highs it hasn’t seen since 2012. On Tuesday, shares hit $31.21 right as the stock market opened. What had followed was a dip back down to lows of $29.30 before an afternoon rally back above $30.
Gold prices extend rally Tuesday, with the precious metal regaining traction, getting back above $2,000 for the first time in about a week. This came amid weakness in the U.S. dollar and lower government bond yields. December gold settled up $14.40, or 0.7%, at $2,013.10 an ounce. The 10-year Treasury note yield was trading around 0.66%, around its weakest level in about a week.
Meanwhile, the dollar hit its lowest level since 2018. A weaker dollar generally boosts the appeal of gold because it is priced in the currency while receding yields can lower the opportunity cost of favoring the precious metal, which doesn’t offer a yield. All of this year’s momentum has brought cause for a more bullish stance from analysts when it comes to gold.
Top Gold Stocks To Buy: Barrick Gold
According to analysts, Barrick Gold stock (GOLD Stock Forecast) is on the list with a favorable outlook. The average twelve-month price target is $24.07. The high price target for Barrick Gold stock is $35.00 and the low price target for it is $5.75. Furthermore, among the analysts covering the stock, GOLD comes in at a “Moderate Buy”.
Barrick Gold stock is on the tip of everyone’s tongue this week. “It’s the ultimate privilege to have Berkshire Hathaway (BRK.A Stock Report) as an investor in one’s company and something that I’ve been aspiring to,” Barrick CEO Mark Bristow tells Fox Business. Bristow says he’s not spoken with anyone at Berkshire regarding the investment. He notes that Barrick doesn’t need to “pray” for gold to go higher in order to turn a profit.
Top Gold Stocks To Buy: B2 Gold
Analysts have also placed a Buy rating on shares of B2 Gold stock (BTG Stock Forecast). Among the majority of analysts covering BTG right now, the general consensus is “Strong Buy”. There is also a slew of price targets placed on the stock over the last 12 months. They range from $4.50 to $12.50 with the average target coming in at $8.45. BMO is the most recent analyst to update its coverage on the company. While it maintains an “Outperform” rating, the firm upped its target from $10 to $11.50 earlier this month.
During the first week of August, B2Gold was among a few gold stocks reporting earnings. While it missed on earnings per share, it beat on revenue and doubled its quarterly dividend. The company also realized record quarterly consolidated cash flow provided by operating activities from the Company’s three operating mines. This was $238 million and was a significant increase of $145 million (156%) over the second quarter of 2019.
On top of that, B2Gold saw record half-year consolidated gold production of 490,206 ounces. This was well above budget by 5% (23,483 ounces) and a significant increase of 20% (80,774 ounces) over the first half of 2019. Total gold production came in at 506,455 ounces.
Top Gold Stocks To Buy: Kirkland Lake Gold
Another one of the top gold stocks to buy according to analysts: Kirkland Lake Gold (KL Stock Forecast). Shares came within striking distance of new 2020 highs on Tuesday. Kirkland Lake Gold stock reached $55.15 during the early morning session. Similar to Barrick Gold stock, Kirkland shares slipped during the mid-morning session, followed by a recovery in the afternoon. Most analysts have a Buy or better on the stock right now.
As far as price targets go, they range from a low of $42 to a high of $84. Analysts from CIBC, TD Securities, and Scotiabank all revised their targets higher in July. Besides the $42 target, the remaining analysts hold theirs at $63 or better for the gold stock.
This week, Newmont Corporation (NEM Stock Forecast) and Kirkland signed a Strategic Alliance Agreement to jointly assess regional exploration opportunities around Newmont’s Timmins properties and Kirkland’s Holt Complex in Ontario, Canada. As part of the Strategic Alliance, Newmont has acquired an option from Kirkland on the mining and mineral rights subject to a royalty payable by Newmont to Royal Gold, Inc. in exchange for a $75 million payment to Kirkland Lake Gold.
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