Ranks of gold shares doubling in value in 2016 continues to grow
Swirling speculation about the possible outcome of a special gathering of the US Federal Reserve and chair Janet Yellen’s meeting with the President Barack Obama helped to lift gold to a three-week high on Monday.
Traders in gold futures in New York pushed gold for delivery in June, the most active contract, to above $1,260 an ounce in morning dealings before settling back $1,258 an ounce, up 1.2% or $15 from Friday’s close. Gold hit a 13-month high of $1,274 an ounce March 10 and is up 18.7% in 2016.
Renewed optimism about the outlook for gold saw investors pile back into gold stocks, pushing many stock to 52-week highs in heavy volumes. Barrick Gold Corp (NYSE:ABX, TSE:ABX), which produced 6.1 million ounces of gold in 2015, jumped 7.5% with more 20 million shares changing hands in afternoon dealings pushing the shares to 18-month highs.
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 121%. At a market value of $19.92 billion in New York, the Toronto-based company is the most valuable gold mining company in the world.
World number two in terms of production Newmont Mining Corp (NYSE:NEM) climbed 6.5% in afternoon trade, near its highs for the day and the best level since August 2013. Denver-based Newmont, the only gold company that forms part of the S&P500 index, is having a monster 2016, with a 72% rise since the beginning of the year.
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