On Thursday, the price of gold surged nearly $70 an ounce as turmoil on world financial markets and global economic fears sparked a return to safe-haven buying.
Futures contracts in New York with April delivery dates jumped 5.8% to a high of $1,263.90 an ounce in massive volumes of nearly three times usual volumes. That moved gold into a bull market with gains topping 20% from the near six-year low struck mid-December.
In early afternoon trade the metal pared some of the gains to trade at just under $1,250 an ounce, still its best level in year. The change in sentiment towards gold evident this year has seen a huge run-up in gold mining stocks and today’s big move saw investors pile into the sector once again.
Barrick Gold Corp (NYSE:ABX, TSE:ABX) jumped as much as 9.3% with more than 25 million shares changing hands by early afternoon, surpassing already high interest this year which has turned the counter into the best performing stock on the market.
Barrick, which produced 6.1 million ounces of gold in 2015, was the tenth most actively traded stock on the New York Stock Exchange, attracting more buying interest than the likes of Ford Motor and Morgan Stanley.
After falling to its its lowest since 1989 in September, today’s surge brings the world’s top producer of the metal’s gains since the start of the year to an astonishing 63%. At a market value of $14.5 billion in New York, the Toronto-based company is the most valuable gold mining company in the world.
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