Gold prices move higher despite a rising dollar

By Staff Writer / July 24, 2021 / Article Link

Gold prices moved higher in  Thusday’s trading session despite a rising dollar. The decline in U.S. yields provided support for the yellow metal.  Reports of unexpected rise in U.S. Jobless Claims saw the dollar rebound from session lows. U.S. Yields moved lower followed.

Fears of the new Delta variant of covid saw August gold contracts go up US$4 at US$1,809.90 an ounce. This helped to push Kirkland Lake Gold Ltd. up 3.5 per cent, B2Gold Corp. up 2.2 per cent, and Kinross Gold Corp. and Barrick Gold Corp. each up 2.1 per cent.

The support of gold prices near the 20-day moving average at 1,798 means we are seeing resistance near the 50-day moving average at 1,836. The consolidation is tightening and building energy. Despite a negative short-term momentum is negative and sideways price action, gold continues to trade in a short-term uptrend.

Analysts continue to see gold prices exposed to downside risks with a break of the support area near the $1799-$1795 region seeming inevitable. Now that gold is holding the lower ground, the immediate support is seen at $1802.

Currently, many junior gold miners are extremely oversold, but larger juniors (GDXJ) and larger miners (GDX) still hold a lot of potential. GDX remains a good 10% above significant, multi-year support. 

One gold stock that performed well this week is Kinross Gold Corporation (NYSE:KGC). Shares of the gold miner rose in value on Thursday, July 22, with the stock price down by -0.65% to the previous day’s close as strong demand from buyers drove the stock to $6.11. With the market capitalization of Kinross Gold Corporation currently standing at about $8.03 billion, investors are eagerly awaiting this quarter’s results, scheduled for Jul 28, 2021. The company’s Forward Dividend Ratio is 0.12, with its dividend yield at 1.96%. Analysts also predicted that in 2022, the company’s y-o-y revenues would reach $4.1 billion. This could raise investors’ confidence to be optimistic about the KGC stock heading into the next quarter.

Canadian Newcore Gold Ltd. Is another gold miner that holds potential after its most recent drill results from the 66,000 metre drill program underway at the Company’s 100% owned Enchi Gold Project. It hit the highest-grade interval to date encountered on the northern portion of the Boin Gold Deposit. As drilling on the southern portion of the Boin Gold Deposit continues to intersect multiple wide zones of gold mineralization, the results from drilling at Boin highlight the potential for continued resource expansion.