Gold has been on a tear of late and closed at a record high on Friday. An economist said on Friday gold miners have lagged the rally in the yellow metal and could soon play catch-up.
Recent Developments: Gold’s record run hasn’t sparked interest in gold mining stocks, highlighted by economist and gold enthusiast Peter Schiff. Dramatically, gold futures concluded Friday at $2,186.20, showing a robust climb of 0.97%. However, the exchange-traded funds involving gold mining stocks remained relatively stagnant. The VanEck Gold Miners ETF GDX concluded the session on a modest uptick at $29.64, while the VanEck Junior Gold Miners ETF GDXJ dipped by 0.42% to $35.93, as per Benzinga Pro data.
“An explosive move up can’t be that far away. So buy the miners before the crowd realizes what’s going on,” Schiff emphasized, hinting at a potential bullish turn.
Addressing the sluggish response of mining stocks, Schiff speculated it may be attributed to investors offloading these stocks in favor of Bitcoin BTC/USD ETFs.
Furthermore, Schiff predicted a solid opening for gold at $2,200 on the forthcoming Monday, suggesting that such a scenario is more probable in the event of a Bitcoin market crash over the weekend.
For More: Check out the Top Gold Stocks Currently Available
5 Gold Stocks To Keep an Eye On: Considering a potential reversal in Federal Reserve rate adjustments, the ongoing gold rally could maintain momentum. Since gold is priced in U.S. dollars, it maintains an inverse relationship with the dollar, a dynamic that could weaken if the Fed opts for rate cuts.
Gold also serves as a reliable hedge against inflation and can serve as a safe haven in times of stubborn inflationary pressures.
Should the yellow metal continue to shine, prompting a surge in gold miners, here’s a list of stocks worth considering:
- B2Gold Corp. BTG
- Centerra Gold Inc. CGAU
- DRDGOLD Limited DRD
- Barrick Gold Corporation GOLD
- Hecla Mining Company HL
- New Found Gold Corp. NFGC
- NovaGold Resources Inc. NG
- Pan American Silver Corp. PAAS
- Seabridge Gold Inc. SA
- Sandstorm Gold Ltd. SAND
These selections were meticulously curated based on the following criteria:
- Market cap exceeding $300 million
- Average trading volume surpassing 500,000
- An “Buy” or higher rating from market analysts
- An average price target from analysts indicating a 30% trajectory over the current market value
Further Reading: ‘You Buy Gold And Hope It Doesn’t Go Up’: Surge In Gold Prices Sparks Investor Debate On Long-Term Value
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