(Kitco News) – Could BAANG be the new FAANG? This new basket of gold miners should not be missed this year, according to Wolfe Research, which came up with the index that includes Barrick Gold, AngloGold, Agnico Eagle Mines, Franco-Nevada and Gold Fields.
“We made this index BAANG in homage to the fading FAANG,” Wolfe Research technical analyst John Roque told CNBC this week.
Roque sees his BAANG index following the same upward trajectory as gold. “[These miners are] much like gold … An excessively low-interest rate is a great environment for gold,” he said.
The BAANG stocks surged 42% since May 10, the technical analyst pointed out while adding that gold is up around 13% since that time.
“We do see it being sustained. We like the fact that gold broke out of a six-year base, we like the fact that central banks keep debasing currencies,” he said. “[Gold] is still way down from its highs in the $1,900 thereabouts and we think both gold and those stocks have more room.”
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