Gold stocks have been benefiting the past few weeks as gold prices continued to increase but on Tuesday the gains were capped below $1,700 with the US dollar strengthening. For investors, bullion could be facing resistance following the punching of prices above $1,700.
The dip below $1,700 per ounce is an indication that gold might have exhausted its upside potential around $1,700-$1,750 levels. June gold lost 1.4% or $23.40 on Comex to $1,687.80 per ounce after a 0.7% gain in the previous session.
Gold Stocks to Watch in April #1 SSR Mining
The coronavirus pandemic might have affected mining operations but gold stocks have been upbeat because of rising gold prices. Gold mining company SSR Mining (NASDAQ:SSRM) has been performing well and had record gold production from its Seabee mine in Saskatchewan and Marigold in Nevada. The company runs silver, zinc and lead mine in Argentina.
This year the company is expecting 80% gold and 20% silver production. But the COVID-19 pandemic that has forced it to shut the Marigold and Seabee could affect its estimates.
Gold Stocks to Watch in April #2 Gold Resource Corporation
Gold Resource Corporation (NYSEAMERICAN:GORO) has reported its Q1 production in which it produced 10,142 ounces of gold, 407,695 ounces of silvers as well as significant lead, zinc, and copper.
Its Oaxaca mine produced around 6,450 gold ounces, 402,542 silver ounces 5,844 tons of zinc, 2,514 tons of lead and 488 tons of copper. The Nevada Mine attained 3,692 gold ounces.
Gold Stocks to Watch in April #3 Alamos Gold
Alamos Gold (NYSE:AGI) is planning to invest in GFG Resources (OTCMKTS:GFGSF) through a CA$5 million private placement for the acquisition of a 9.9% stake in the company after finalization of the Offering. The Offering comprises of FT Share offered at CA$0.291 per share as well as non-flow through shares at CA$0.19 per share.
The company will use proceeds from the FT Shares sale to enhance exploration operations in Ontario. At the same time proceeds from non-flow through shares will be for working capital.