Gold (NYSEArca:GLD) Spikes on Heavy Volume
$GLD, $GDX, $KGC, $SLW, $ABX, $EXCFF, $NEM, $GG
Tuesday, the return of the safe haven buyer and a weaker USD combined to lift the precious Yellow metal to its highest mark since the election of Donald Trump on 8 November.
Gold futures in New York for delivery in August, the most active contract, touched a high at 1,298.80, up more than 1% in heavy volume of more than 24-M oz, before pairing some gains in afternoon trade.
- June Gold + 14.60 at 1297.30 oz
- July Silver + 0.12 at 17.71oz
Gold is up 12.8% YTD.
Gold’s recovery, +80 oz in less than a month was given mew power from disappointing NFPs released Friday that hurt USD and clouded the outlook for GDP growth in the US economy.
Geopolitical worries including upcoming elections and terrorist attacks in the UK and an escalating differences between Saudi Arabia and Qatar is provided further fuel.
Persistent economic weakness, political uncertainty, and a stock market on edge should keep gold well supported at this higher range in the near term
Analysts at Canada’s TD Securities in a note Monday said investors continue to show demand for Gold as an uncertainty hedge: “Going into a week that contains a testimony by James Comey, an election in the UK, as well as an ECB meeting, there are plenty of reasons for investors to keep gold in their portfolio. Indeed we have seen net positioning grow once again last week as longs continue to build, and shorts likely get squeezed out as gold grinds higher.”
Persistent economic weakness, political uncertainty, and a stock market on edge should keep gold well supported at this higher range in the near term. Moving forward the focus will be on the June FOMC meeting to set direction from here. If the Fed maintains their stance that another hike is still in the cards then gold could run out of steam, but should they remain cautious, as we believe they will, Gold could move higher and test the 1300 oz mark once again.
Gold and Silver Mining and Royalty Streaming stocks are up as Gold price targets 1,300, Gold’s leg up Tuesday saw major Gold mining stocks enjoying the best trading day in weeks.
Toronto’s Kinross Gold (NYSE:KGC) was once again the Top performer among the majors with a 9.2% surge
Top producer Barrick Gold (NYSE:ABX) jumped 5.2% affording the Toronto-based company a $19.8-B market valuation in New York.
A 4,76% gainer for world #2 producer Newmont (NYSE:NEM) with output of 5-M oz expected this year, lifted the Denver-based company back into positive territory for the year. Vancouver-based Goldcorp (NYSE:GG) added 4.4% for a market cap just shy of $12-B.
The 2rd largest gold miner in terms of output, AngloGold Ashanti (NYSE:AU) counters trading in New York spiked 7.55% bringing its YTD gainer to 18%.
South Africa-based producers Sibanye Gold, Harmony Gold and Gold Fields all added more than 6%.
Kinross Gold was once again the top performer among the majors with a 9.2% rise is now up more than 41% in Y 2017 affording it a market cap of $5.7-B.
Other Canadian Gold companies also performed well with Agnico Eagle up 5%, Yamana Gold adding 7.4% and Eldorado Gold gaining 5.9%.
|HeffX-LTN Analysis for GDX:||Overall||Short||Intermediate||Long|
|Bullish (0.28)||Bullish (0.26)||Very Bullish (0.50)||Neutral (0.07)|
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Neutral (0.24)||Neutral (0.23)||Bullish (0.38)||Neutral (0.11)|
|HeffX-LTN Analysis for SLV:||Overall||Short||Intermediate||Long|
|Neutral (0.13)||Neutral (0.09)||Bullish (0.35)||Neutral (-0.06)|