Gold prices are holding around the one-month peak established last week as concerns about the economic outlook continue to worsen due to COVID-19 pandemic and the Fed’s stimulus package kept the prices elevated.
Spot gold dropped 0.1% to around $1,686.82 per gold ounce after peaking on Friday which is the highest since March 9th. US gold futures eased 0.7% to $1,739.90. Bullion got support following the Fed’s announcement of a $2.3 trillion loan program.
Gold Stocks To Watch As Gold Prices Consolidate #1 Newmont Mining
Newmont Mining (NYSE: NEM) matched gold futures in rallying to its highest in seven years boosted by the weakening dollar after the Fed’s new lending program. As a result, JPMorgan initiated coverage on the miner with a price target of $61 and an “overweight” rating.
The company is expected to generate solid cash flow under the current high gold prices to enable it to fund its 2% dividend yield as well as sustain capital expenditures and also development expenses.
Shares of NEM ended higher by 13.50% on Thursday and closed at $57.31 after hitting a high of $57.70.
Gold Stocks To Watch As Gold Prices Consolidate #2 Endeavour Silver
Endeavour Silver Corp (NYSE: EXK) has reported its first-quarter production in which YoY gold production dropped 16% to 8,476 ounces and a 20% drop in silver to 857,659 ounces. However, the silver equivalent production was in line with previous guidance of 1.5 million ounces before the suspension of mining operations due to COVID-19.
Towards the end of the quarter, the company suspended operations in Mexico up to April 30 in line with the government’s directive on social distancing and closure of non-essential businesses.
Shares of EXK soared over 9% to close at $1.43 on Thursday.
Gold Stocks To Watch As Gold Prices Consolidate #3 Tanzanian Gold
Tanzanian Gold Corp (NYSEAMERICAN: TRX) has doubled its projected Buckreef Shear Zone mineral resource to 2.3 million gold ounces in measured and indicated categories. The company expects to continue the third phase (ultra-deep) drilling program.
The company excavated the first bucket from the Buckereef sheer zone open pit in April which is an indication of commencement of ores mining. These will be processed by Tanzanian Gold’s new Oxide processing plant.
TRX stock went up as much as 20% in the past two trading sessions.