The coronavirus epidemic has wrecked markets all over the world. Meanwhile, gold prices have soared. Over the last few weeks, gold prices have held and overall uptrend. Even as prices dropped last week, gold maintained levels above its 50-day moving average (yellow line). This is an important technical level for traders to take note of. It can, many times, present a potential level of support. As we know, when support breaks down, so can a stock or in this case futures.
While prices didn’t break below the 50MA, they did test it once last week. Suggesting this could be a stronger level of support for gold, is this the bounce investors have been waiting for?
Oil Slump and Gold Prices Soar Over The Weekend
Oil prices fell Monday and gold rose to a seven-year high as the number of coronavirus cases outside China continued to multiply. On that note, here is a quick look at 3 gold stocks that could be added to the watch lists this month.
#1 Gold Stocks To Watch #1 Yamana Gold
The first gold stock that could be considered by investors is that of Yamana Gold Inc. (AUY – Free Report). The stock has performed impressively since last May and has emerged as one of the top gold stocks to watch this year. In February, Yamana announced the launch of precious metals royalty company in collaboration with Orion Resource Partners.
Yamana Gold is going to sell its royalty to Guerrero Ventures in a deal worth $65 million. This is an important development for Yamana and one that could have far-reaching ramifications considering gold prices right now.
#2 Gold Stocks to Watch: Harmony Gold
Next, Harmony Gold (HMY – Free Report) has captured attention thanks to its latest deal with AngloGold Ashanti (AU – Free Report). Specifically, the company was chosen by AngloGold to purchase the remaining South African assets. The purchase price of the deal was $300 million.
“Over the past two years, Harmony has added over 500,000 quality gold ounces per annum through the acquisition of Moab Khotsong and now Mponeng and Mine Waste Solutions. The Acquisition has the potential to improve our overall recovered grade and increasing our cash flow margins. Harmony has demonstrated its ability to increase the life of mines it operates in South Africa – sustaining the mine communities surrounding the mining operations, preserving jobs and further unlocking value for its shareholders through increased grades and stronger margins”, Peter Steenkamp, chief executive officer of Harmony said in a press release.
#3 Gold Stocks To Watch: IMC International Mining
Take IMC International Mining (IMIMF – Free Report) (IMCX) for instance. The gold penny stock has maintained a relative sideways trend for a few weeks now. But after its latest announcement, shares have begun to climb in both price and trading volumes. Last month IMC International announced the signing of a letter of intent to acquire Than Minerals. The opportunity here is the fact that Thane owns 100% of the Cathedral property in northern British Columbia.
Since Cathedral is located in the Quesnel Terrane, the property is amid several mineral-rich deposits. In fact, the Quesnel Terrane is host to past and planned production of 50 billion pounds of copper, 28 million ounces of gold, and has 16 producing and development projects.
IMC International Mining & The Quesnel Terrane
With the rising price of gold, this acquisition could present bigger opportunities for IMC. Earlier this month, IMC added a bit more excitement to the mix in announcing that it plans to close on this acquisition by March 15 or earlier. I don’t have to explain why this could be a big milestone for the company.
Not only would it add another asset to its books but it would put the company in a location within one of the world’s most active gold discovery & mining zones. Don’t forget, just northwest of the area is the famous British Columbia Golden Triangle. That’s been home to some of the biggest gold discoveries in history.
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp.(CSE: IMCX), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX). Read full disclaimer here.