Mar 24, 2020 (GoldStocks.com via COMTEX) -- Gold broke back above the $1,600 mark today as new hopes jumped on the latest coronavirus stimulus package. This could be a good time to take a look at some gold stocks that have been putting in some nice intraday moves.
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Some have also begun looking at possible long positions with the coronavirus bringing the world's economy to a shutdown. Gold has always been a safe haven for investors during any crisis which is partially the reason behind its stratospheric move over the last year.
We saw a little sell-off in gold stocks which had to do with gold prices falling back in mid-March. Some investors were a little shocked by this action but similar to stocks nothing can go up forever. Not to mention a pullback is healthy. Now, with gold being back above $1,600 it’s worth looking at a few gold stocks here.
Eldorado Gold ( EGO Stock Report ) is now sitting above June's resistance at $4.50. In June the stock made a move from this area all the way up to $11.00. That's a 100 % move from where the stock closed at on Monday. Eldorado also announced a name change and appointed Paul Wright to its board.
With gold back above $1,600 Eldorado, which has followed along with the price of gold could be one to watch if prices remain in their uptrend. On the downside this morning they were forced to temporarily minimize operations at its Lamaque mine until April 13th do the coronavirus. So it will be interesting to see what, if any potential blowback could come of this latest news.
Barrick Gold Corp ( GOLD Stock Report ) ( ABX ) is the next stock I would like to talk about. It came down below its 50- and 200-day moving averages and has now tried to fill its gap from a few weeks ago.
Shares continued to bounce back to test its 200-day moving average at $17.53 and have now headed back toward the 50-day moving average at $18.77. If Barrick Gold stock can break and hold its 50-day moving average, we could be looking for a push back to test previous levels from early-March.
On March 20 [th] Barrick said that the virus has not affected the company. The company’s orders and supply chain are still in place. Barrick also had news on March 17 [th] that the company intends to make Veladero Gold mine a Tier one asset. The company looked at its business plan and strategy and now think it can get a minimum of 10 more years out of this mine. Barrick’s supply chain is still in place and is getting some extra years out of an old mine are all positives for the company. Given the latest move for gold and Barrick’s current model, could now be perfect timing for another bullish trend?
Gold Fields Limited ( GFI Stock Report ) is now trading above June's resistance like EGO. This is another possible 100 % move from this area. The stock closed at $4.60. Next resistance looks like it could be around $5.71; the stock’s 200-day moving average. The 50-day is sitting around $6.16. If Gold Fields stock can get up and over these areas, the next potential resistance doesn’t appear until the $7.00 area. This is a level that GFI stock couldn’t break above during the first week of March.
On the 23rd of March Gold Fields had an Insider buy shares on the open market. That is a bullish sign for the company. BlackRock Inc. also filed a 13G showing Institutional investors are also getting interested in the company.
On the 24th, the company announced that it fully supports policies to curb the coronavirus pandemic. “Gold Fields is fully committed to first and foremost protecting the health and safety of our people and communities, and supports all governments’ efforts to contain the spread of the virus,” said Gold Fields CEO Nick Holland.
Truly strong stocks will give you multiple entries if you missed out on the first gold stock move then this is the time to start looking again. These stocks made massive moves before the market sell-off and some are starting to look attractive here sitting around mid-summer prices. Many expect the price of gold to keep above $1,500 an ounce with so much uncertainty in the market right now. This is the time to start taking a look at the gold sector once again.
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