Will the end of the year hold a spurt on the gold market?

By CanadianMiningReport.com Staff Writer / November 06, 2020 / Article Link

With two months left until the end of the year, the chances for a final spurt on the stock markets are looking better.

Various industry insiders have expressed their optimism for a bullish run for gold prices and gold stocks at the end of the year. Chris Vermeulen, market strategist of Technical Traders, sees the gold price at the end of 2020 climb to $2,300 an ounce. This will increase the value of junior gold miners and gold ETFs alike. The popular VanEck Vectors Junior Gold Miners ETF, still has around 60 percent room to rise in the coming months.

2020 has been a special, unprecedented year. A declining US dollar and global pandemic of COVID-19 drove investors towards safe havens like gold, silver and gold stocks. The phenomenal decline in the stock market was somewhat offset in the second quarter after governments started lifting lockdown restrictions and from a historic perspective, the fourth quarter is usually a good one. Some investors or fund managers usually wait until the end of the year until they get involved in the rally. This in turn would strengthen the gold price and above all the share values of gold companies.

While all these gains may be COVID-19 dependent, the Gold Renaissance is setting new highs and amid the growing uncertainty and volatility across the entire spectrum of markets.

As a result, most analysts think gold has plenty of room to run. Goldman Sachs raised its 12-month price target for the popular hedge on July 28 to $2,300 per ounce, expecting gold to reach a record high amid lasting virus damage. With interest rates set to remain close to zero for years to come and the US dollar facing significant pressure, the yellow metal’s rally shows no signs of stopping.

Junior gold miners are among the main beneficiaries of this development. One junior gold mine that needs immediate attention is JNC Resources Inc. (OTCMKTS: JNCCF) (CSE: JNC). The North American based mining exploration company recently began trading on the Canadian Securities Exchange (CSE). With the acquisition of controlling-interest in the Imperial Property, and further news listing onto the US OTC market, the company has expanded its audience, which has evidently led to an appreciation in its share price.

Overall, the junior gold miners sector continues to be the strongest this year by a wide margin. The M&A in the sector this year is hotter than ever with a new takeover offer showing up every month of 2016 thus far.

Two of the best gold stocks to buy right now come from Canada in the form of Eastmain Resources, Inc. (TSX:ER) and Oban Mining Corp. (TSX:OBM) - two Canadian gold junior mining companies whose recent undertakings are instilling confidence that majors are interested in.