Gold prices continued to rise on Tuesday after gaining 3.7% on Monday which is the highest gain for the yellow metal since June of 2016. This comes as the US central bank announced extraordinary measures to cushion the economy from effects of the COVID-19 epidemic.
Spot gold jumped 1.7% to $1,578.83 per gold ounce following a terrific gain on Monday. On the other hand, US gold futures also gained 6.50% to $1,664.20 per gold ounce. This comes as the effects of the coronavirus pandemic continue to be felt in the gold sector with various gold miners shutting operations because of the virus.
Ming Stocks In Focus As Gold Resumes Uptrend #1 Newmont Corporation
Various governments have imposed strict travel regulations and as a result, most miners are putting their mines under care and maintenance during that period. For instance, Newmont Corporation (NYSE: NEM) has placed four of its mines in Canada, Argentina, and Peru on care and maintenance amid the growing spread of COVID-19.
The company has also withdrawn its FY2020 guidance and said that some of its production could be pushed to 2021. Interestingly mines representing 80% of Newmont’s production are still operational in line with this year’s production targets.
Ming Stocks In Focus As Gold Resumes Uptrend #2 Kirkland Lake
Also Kirkland Lake Gold (NYSE: KL) has also indicated that it is temporarily cutting its operations at the Detour Lake mine, Ontario as well as halting exploration activities because of the coronavirus. During this period of reduced operations, the company indicates that it will retain 300 workers at the site to conduct essential activities.
The activities that will go on include water level management during the spring runoff, environment management activities as well as mill processing from stockpiles and open pits. The company also terminated its automatic stock purchase plan.
Ming Stocks In Focus As Gold Resumes Uptrend #3 B2Gold Corp
Another company that has suspended operations as a result of this crisis is B2Gold Corp (NYSEAMERICAN: BTG). The company is suspending activities at the Masbate mine located in the Philippines because of fuel supply limitations resulting from the COVID-19 outbreak. It is also suspending drilling at the Gramalote mine in Colombia.