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The Golden Surge: Gold Prices Reach New Heights Boosting Mining Stocks

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On Monday, the unrelenting climb of gold prices, steered by the SPDR Gold Trust GLD, breached the $2,110 per troy ounce threshold. This monumental leap places gold on the cusp of a historic close and ignited a vigorous rally in mining stocks across the market.

Market Resilience Amidst Rising Treasury Yields

This recent upswing marks the fourth consecutive day of gains for the precious metal, bringing it within striking distance, a mere 1.4% away, of the all-time high achieved back on December 4, 2023. Even as Treasury yields exhibited an uptick on Monday, with the 2-year Treasury note yielding at 4.60%, gold showcased remarkable resilience.

Despite the rise in Treasury yields, market sentiment remains positive with traders indicating a steady 65% likelihood of a Federal Reserve interest rate cut by June. The current forecast also anticipates a total of four rate cuts by year-end, keeping the market atmosphere charged with optimism.

Geopolitical Uncertainty Fosters Gold Demand

According to the latest World Gold Council report, the escalating geopolitical turmoil on the global stage is a major driver behind the surge in gold demand in 2024. Ongoing conflicts, escalating trade tensions, and a whirlwind of over 60 elections worldwide are compelling investors to flock to gold as a tried and tested safe-haven asset.

The allure of gold as a steadfast sanctuary during turbulent times is a narrative that resonates across history, echoing moments of uncertainty and bolstering its status as a financial safeguard for investors.

Chart: Gold Prices Surge Towards Record Highs, Signaling Market Vibrancy

This surge in gold prices has effectively catalyzed a substantial upsurge in mining stocks, sparking newfound vigor in the sector.

An Unprecedented Rally in Mining Stocks

The VanEck Gold Miners ETF GDX experienced a robust 4.4% rally on Monday, building upon the momentum built from last Friday’s impressive 3.7% surge. Surpassing the 50-day moving average, the ETF now sets its sights on the resistance denoted by the 200-day moving average situated at $28.79.

Meanwhile, the Sprott Junior Gold Miners ETF SGDJ soared even higher with a remarkable 5.3% surge, following a 4% leap on Friday, illustrating a robust momentum in the sector.

Chart: Mining Stocks Forge Ahead After Impressive Performance

Top-Performing Gold Mining Stocks of Monday

The table below showcases Monday’s standout gold mining stocks, highlighted within the Sprott Gold Miners ETF SGDM:

Company Price ($) Price Change (%)
Harmony Gold Mining Company Ltd. HMY 6.77 13.97
Coeur Mining, Inc. CDE 2.95 8.86
AngloGold Ashanti plc HMY 21.11 8.26
Torex Gold Resources Inc. TXG 16.16 6.67
Seabridge Gold Inc. SA 12.45 6.23
OceanaGold Corporation OGC 2.59 6.15
Kinross Gold Corporation KGC 5.37 5.71
Lundin Gold Inc. LUG 17.17 5.47
Eldorado Gold Corporation EGO 11.35 4.80
Newmont Corporation NEM 33.47 4.79

Read now: Downgrades Flood In For Commercial Real Estate Stocks: Analysts Warn Of β€˜Rocky Road Ahead’

Photo: Shutterstock

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