While Coronavirus Impacted The Market, It Also Affected These Gold Stocks
The continued uncertainty in the markets owing to the coronavirus scare resulted in a significant rally in gold earlier this week. However, the precious metal ended up sliding toward the end of the week as fears captivated the entire market. On the other hand, Bank of America reiterated its price target of $1700 an ounce at the end of 2020.
Needless to say, the banks added that if coronavirus does turn into a global pandemic, then gold could even touch $2000 an ounce. In the meantime, many gold stocks were hit by selling pressure. But In such a situation, should investors be eyeing all gold stocks to find opportunities in potential dips?
On the other hand, should they look for different gold stocks actually holding gains right now? With this in mind, here are a few gold stocks that fell victim to coronavirus fears heading into March.
Gold Mining Stocks to Watch #1 Tanzanian Gold Corporation
The first gold stock that could be put into the watch list is that of Tanzanian Gold Corporation (TRX – Free Report). It made a major announcement on Thursday. The company provided an update with regards to the Phase 3 deep drilling program. Tanzanian seeks to test the underground potential at its Buckreef Gold project.
The company announced that it found an upper-level intercept of as much at 48m and another deeper intercept of 13.4m. This is a significant development for the company, and it remains to be seen how the stock reacts in the coming days.
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But given the state of the market, it’s clear that Tanzanian gold stock got hit by the coronavirus this week. By the end of the week, it gave up all of its small gains from the year and then some. The stock hasn’t traded this low since January 2019.
Gold Mining Stocks to Watch #2 Harmony Gold
On the other hand, investors could also start tracking Harmony Gold (HMY – Free Report). The stock has performed impressively over the past few weeks. Since February 12, it has gained as much as 35%. At the time, the company announced that it had reached a deal with AngloGold Ashanti (AU – Free Report), to acquire the latter’s South African assets.
It is a significant deal for Harmony Gold. But unfortunately, the stock also fell victim to coronavirus mayhem. Since reaching its new 52-week high this week, Harmony Gold stock gave back all of its 2020 gains. It also came within striking distance of its previous 2020 low. Though it didn’t quite get there, it was a tough week for the gold stock. Can it recover in March?
Gold Mining Stocks to Watch #3 Gold Resource Corporation
Lastly, investors could also take a look at Gold Resource Corporation (GORO – Free Report). It declared its monthly dividend earlier this week. The company announced that the monthly dividend for February is going to be one-third of a cent for each common share of the company. The dividend payout comes on March 23 to all who had been shareholders as of March 11.
What’s more, is that Gold Resource also announced its 4th quarter and year-end conference call date. March 3 will see company CEO Jason Reid discuss results and an update on current operations. While this would otherwise be a potential source of speculation, it flew by the wayside as shares continued to tumble.
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Gold Resource reached new 52-week highs of $6.24 earlier this week. But thanks to the coronavirus concerns in the market, finished the week at $4.02. It not only gave back all of 2020’s gains, but it also reached levels not seen since October of last year. Will March be a turnaround month for Gold Resource stock?
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