Gold stocks Friday moved up in unison and some of the big ones made it to new 52-week highs. Although worries about inflation might be the most likely explanation, other factors are a part of the story. The sudden same day drop in cryptocurrencies may have investors looking at the precious metals alternatives.
Besides being thought of as a place to go for inflation expectations, some consider precious metals as a fear or uncertainty hedge, in general. The post-debate conversation about President Biden’s performance and the new, closer examination of Project 2025 and The Heritage Foundation may be in the mix.
Whatever the reason or reasons, gold reversed direction from mid to late May and the sector’s equities bumped up.
Here’s the daily price chart for the VanEck Vectors Gold Miners ETF:
The fund, which has 60 holdings in the gold mining group, this week blasted back above the 50-day moving average. Price had been consolidating for 6 weeks following the spectacular gains from the March low to the mid-May high. Note how the 200-day moving average (the red line) is trending upward.
AngloGold Ashanti (NYSE: AU) has a daily price chart that looks like this:
Since this year’s 5th of July was a light trading day, the move up came on reasonably decent volume, a confirmation of serious buying. Someone — or a few investors — really like it. Market cap is $12.10 billion. With corporate headquarters in London, the company has global operations.
Here’s the daily price chart for Coeur:
The Canadian-based gold and silver miner this week popped to a new high. It’s notable that the stock has managed to stay above its 50-day moving average continuously since the March low. The 200-day moving average trends steadily upward. The company’s market cap is $2.52 billion.
The daily price chart for Kinross Gold (NYSE: KGC) looks like this:
It’s another higher high for the Toronto-based gold miner. You can see that it’s traded above its 50-day moving average since mid-March and that the 200-day moving average is trending up. Kinross’ market cap is $10.41 billion. The price-earnings ratio is 24 and it trades at 1.69 times book value.
Here’s the daily price chart for Newmont Corporation (NYSE: NEM):
That’s a new high for the biggest of the NYSE gold miners: market capitalization for Newmont is $51.33 billion. The 50-day moving average crossed above the 200-day moving average in early May. UBS in late June moved the stock from “neutral” to “buy” with a price target of $50.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More price chart analysis and commentary at johnnavin.substack.com.
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