HomeMarket NewsThe Golden Opportunity: Analyst Predicts Explosive Move Up for Gold Stocks Amid...

The Golden Opportunity: Analyst Predicts Explosive Move Up for Gold Stocks Amid Record Highs

Actionable Trade Ideas

always free

3d Illustration Of Gold Ingots Over Blac

Recent surges have placed gold at a record high, signaling potential for investment growth. Economist Peter Schiff noted that despite this, gold mining stocks have not kept pace and could soon make significant gains.

The Current Landscape: On Friday, gold futures reached $2,186.20, marking a 0.97% increase. However, exchange-traded funds containing gold mining stocks saw minimal movement. The VanEck Gold Miners ETF GDX closed at $29.64 with a modest 0.10% rise, while the VanEck Junior Gold Miners ETF GDXJ fell by 0.42% to $35.93, as per Benzinga Pro data.

Schiff expressed optimism stating, β€œAn explosive move up can’t be that far away. So buy the miners before the crowd realizes what’s going on.”

One plausible reason for the lag in mining stocks, as per Schiff, could be investors pivoting towards selling these stocks in favor of Bitcoin BTC/USD ETFs.

Additionally, Schiff forecasted an opening price gap for gold at $2,200 on the coming Monday, particularly if Bitcoin undergoes a market downturn over the weekend.

Discover More: Top Gold Stocks at Present

Top Picks: Five Gold Stocks to Monitor: With potential rate adjustments from the Federal Reserve, the trend of gold’s rise may persist. Gold, juxtaposed with the U.S. dollar, typically exhibits an inverse correlation, a pattern that could weaken when the Fed opts for rate cuts.

Furthermore, gold serves as a reliable hedge against inflation, becoming a favored asset during periods of sustained inflationary pressure.

Should gold continue to shine and mining stocks ascend alongside, the following companies are poised for growth:

  • B2Gold Corp. BTG
  • Centerra Gold Inc. CGAU
  • DRDGOLD Limited DRD
  • Barrick Gold Corporation GOLD
  • Hecla Mining Company HL
  • New Found Gold Corp. NFGC
  • NovaGold Resources Inc. NG
  • Pan American Silver Corp. PAAS
  • Seabridge Gold Inc. SA
  • Sandstorm Gold Ltd. SAND

These selections met the following criteria for screening:

  • Market cap exceeding $300 million
  • Average trading volume surpassing 500,000
  • Analyst endorsement of β€œBuy” or above
  • Consensus among analysts with a price target 30% higher than current market value

Explore Further: Analysis of Gold’s Long-Term Value Amid Price Surges

Image Source: Shutterstock

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.