Gold Breaks Above $2,110, Inches Closer To Record High, With Rallying Mining Stocks
Gold prices, tracked by the SPDR Gold Trust (NYSE:GLD), edged above $2,110 per troy ounce on Monday, poised to achieve a record close and triggering a significant surge in mining stocks.
This marked the fourth consecutive session of gains for the precious metal, bringing it within 1.4 percent of the all-time high reached during the intraday session on Dec. 4, 2023.
Despite the rise in Treasury yields on Monday, with the yield on the 2-year Treasury note inching up to 4.60%, gold exhibited strength in the market.
Market-implied probabilities for a Federal Reserve interest rate cut remained largely unchanged. Traders currently assign a 65% chance of a rate cut by June, with a total of four rate cuts expected by the end of the year.
According to the latest World Gold Council report, increasing geopolitical uncertainty is a significant driver of gold demand in 2024. Ongoing conflicts, trade tensions, and over 60 elections worldwide are likely to prompt investors to seek gold as a proven safe-haven asset.
Chart: Gold Prices Notch Record Close, Eye All-Time Highs
This surge in gold prices fueled a significant rise in mining stocks.
The VanEck Gold Miners ETF (NYSE:GDX) rallied by 4.4% on Monday, building on the momentum from Friday’s 3.7% surge.
The gauge has effectively surpassed the 50-day moving average, setting its sights on testing the resistance indicated by the 200-day moving average at $28.79.
Meanwhile, the Sprott Junior Gold Miners ETF (NYSE:SGDJ) soared even higher by 5.3%, following a 4% leap on Friday.
Chart: Gold Miners Rally After A Double Bottom In February, Break Above 50-Day Average
Monday’s Best-Performing Gold Mining Stocks
The table below displays Monday’s top-performing gold mining stocks included in the Sprott Gold Miners ETF (NYSE:SGDM).
| Company | Price ($) | Price Change (%) |
|---|---|---|
| Harmony Gold Mining Company Ltd. (NYSE:HMY) | 6.77 | 13.97 |
| Coeur Mining, Inc. (NYSE:CDE) | 2.95 | 8.86 |
| AngloGold Ashanti plc (NYSE:HMY) | 21.11 | 8.26 |
| Torex Gold Resources Inc. (NYSE:TXG) | 16.16 | 6.67 |
| Seabridge Gold Inc. (NYSE:SA) | 12.45 | 6.23 |
| OceanaGold Corporation (NYSE:OGC) | 2.59 | 6.15 |
| Kinross Gold Corporation (NYSE:KGC) | 5.37 | 5.71 |
| Lundin Gold Inc. (NYSE:LUG) | 17.17 | 5.47 |
| Eldorado Gold Corporation (NYSE:EGO) | 11.35 | 4.80 |
| Newmont Corporation (NYSE:NEM) | 33.47 | 4.79 |
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