There have been many gold stocks to watch in the last week. The reason behind this is the increasing price of gold itself. It seemed like gold could not push past the $1,800 per ounce price point for a few months. In May, the metal finally broke past the $1,800 per ounce mark and remained there for now.
In 2020, gold reached a new record high of more than $2,000 per ounce. This brought a lot of new attention to gold that was previously not there. The reason for this uptick was the pandemic’s destruction of the economy. The COVID-19 pandemic crashed the price of the dollar and made investors move their money into gold stocks instead.
So what things have an impact on gold prices? For one, world news is essential to look at when investing in gold stocks. For example, look at how the pandemic has impacted the sector. Next up would be sector news, anything from gold price movement to shortages and surpluses. Company news is also important, as advancements can make a company’s stock price go up even if the broader gold market is down.
Companies with a lot in the pipeline are good to consider if you plan on long-term investing in gold stocks. If you plan on short-term investing or swing trading these assets, then the latest and greatest news or rumors will be what you’re looking for with a company. Short-term investors can even consider mining stocks.
Hot Gold Stocks To Watch
- Kinross Gold Corporation. (NYSE: KGC)
- IAMGOLD Corporation (NYSE: IAG)
- Eldorado Gold Corporation (NYSE: EGO)
Kinross Gold Corporation. (NYSE: KGC)
Kinross Gold Corporation is a mining corporation that explores, acquires land, and develops gold properties worldwide. Some of its countries of operation include the United States, Canada, Brazil, Chile, Russia, Ghana, and Mauritania. It will extract and process gold ores and then produce and sell the yellow metal.
The gold company reported its first quarter results on May 11th. This could be a partial reason for the increase in stock price for Kinross. The company achieved 558,777 ounces of gold equivalent production. This places it on track to meet its guidance for the year of 2.4 million.
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In regards to its recent numbers, President and CEO J. Paul Rollinson said, “The Company delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold, once again outpacing the increase in the average realized gold price.”
Keeping all of this in mind, will KGC make it on to your list of gold stocks to watch?
IAMGOLD Corporation (NYSE: IAG)
This gold penny stock, IAMGOLD Corporation, is experiencing some momentum at the moment. IAMGOLD is a mining corporation that explores, operates, and develops a variety of mineral properties. The company’s assets are located in North America, South America, and West Africa too. It normally looks for gold but also has interest in other mineral properties such as silver.
You could say the company’s stock price has increased because of the higher gold prices at the moment. But the company also just released an operational update on May 13th. It announced that at its Rosebel Gold Mine, it has finalized a new collective labor agreement for two years. At its Westwood Mine in Canada, it plans to proceed with targeted safe restarting of its underground operations following an employee recall.
This restart will potentially bring the company’s production numbers up in time for its news results report. IAG stock has increased by 2% in the market the day after the release. It seems like this is attributed to both its operational update and the rising prices of gold. With all of this to note, is IAG stock on your gold watchlist?
Eldorado Gold Corporation (NYSE: EGO)
Eldorado Gold is a gold stock that explores, discovers, develops, and acquires mineral properties. It then produces, and sells the minerals on the land. Eldorado’s main resources include gold, silver, lead, zinc, and iron ore. Eldorado operates the Kisladag and Efemcukuru mines located in Canada and Greece.
This is another gold stock that has joined earnings season. On April 29th, the company reported the latest update. Its total gold production is in-line with 2021 annual guidance, but decreased 4% year over year. The company’s revenue, gold revenue, and free cash flow all increased year over year in this first quarter.
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The President and CEO, George Burns said, “This result was accomplished in spite of a resurgence of COVID-19 in the countries in which we operate and is a testament to the commitment and care of our teams around the world.” Now investors are wondering if the company will be able to reach as high as it did last year in stock price. This would likely only be able to happen if gold prices move up a lot more, or if the company was acquired by a large gold producer. For now, will you keep EGO stock on your gold watchlist?
Investing In Gold Stocks
As the economy is in a volatile state, nobody knows what is going to happen to precious metals at the moment. It is possible that gold goes up more as reopening loosens around the world. This could happen because of increased retail sales and industrial use. In the United States, the COVID-19 pandemic has calmed down a lot with very low cases and 46% of the population being vaccinated. This could make the upcoming holiday season a huge one for retail spending. Only time will tell what the gold market has in store for the future. So which company will make it on to your list of gold stocks to watch?
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