After taking a backseat to Bitcoin for the past six months, gold has finally regained some of its shine in recent weeks amid lackluster economic data and concerns about rising inflation.
“It seems to be that it is the fear of inflation rising beyond the US Federal Reserve’s comfort levels driving precious metals, helped by the suggestion of a possible rise in interest rates sooner than the Fed has been predicting all along,” Sharps Pixley’s Lawrie Williams told leading industry publication Mining Journal.
The yellow metal closed 1.6% higher Monday to settle at $1,867.60 an ounce, its highest level in over four months. Gold’s turnaround helped propel these three leading gold mining stocks above their 200-day simple moving average. Below, we take a closer look at each and use technical analysis to identify important chart levels.
Toronto-based Barrick Gold Corporation (GOLD) explores for, mines, and sells gold and copper, with key operations in North America, South America, Australia, and Africa. Last year, the miner produced around 5 million attributable ounces of gold and nearly 460 million pounds of copper. Through Monday’s close, Barrick Gold stock has a market capitalization of $44.76 billion and offers a 1.5% dividend yield. It trades up 10.93% on the year.
From a chart perspective, a break above the 200-day SMA in Monday’s trading session may act as a catalyst for a move up to key overhead resistance at $28.50.
Also headquartered in Toronto, Kinross Gold Corporation (KGC) is a leading gold and silver miner, producing roughly 2.4 million gold equivalent ounces in 2020. The company, which has used acquisitions for geographic expansion, operates in the Americas, West Africa, and Russia. Kinross Gold stock has a market value of over $10 billion and issues a 1.54% yield. YTD it trades 12.53% higher.
Taking a look at the technicals, a close above the 200-day SMA Monday on above-average volume indicates further upside that could see a test of crucial resistance at $9.30.
Kirkland Lake Gold
With an $11.62 billion market cap and 1.85% dividend yield, Kirkland Lake Gold Ltd. (KL) engages in gold mining and production activities. The company’s assets include the Macassa mine located in northeastern Ontario and the Fosterville gold mine situated in Victoria, Australia. Kirkland Lake Gold stock has gained nearly 6% since the start of the year.
Chart-wise, Monday’s breakout above the 200-day SMA may give bullion bulls the confidence to make a run at multiyear horizontal resistance around $51.
For a look at today’s earnings schedule, check out our earnings calendar.