Despite year-end Slide, Gold Prices Remain in Uptrend

By Staff Writer / December 07, 2021 / Article Link

Gold prices dropped 4.4% in 2021 against a strengthening dollar and new economic measures to combat the fallout of the global pandemic.

Interest from investors continued throughout the year largely fueled by market volatility and economic uncertainty. Gold has traditionally served as a safe haven against inflation, but that wasn't the case this year. Consumer prices soared 6.8% in the 12 months through November, the biggest increase in 39 years.

Gold recently made an attempt to retest the resistance level of $1,800 and traded at $1,814.30, up 0.47%. Gold has averaged around $1,806 an ounce so far in 2021.

As gold managed to retain its ground lately bullion’s safe-haven appeal was lifted. Gold stocks were quick to follow. Gold is anticipated to gain further in 2022 on the back of continued inflation, uncertainty regarding the Omicron variant and geopolitical tensions.

Picking gold stocks with a Buy rating like Seabridge Gold SA, Fury Gold Mines FURY and US Gold Corp USAU is prudent move at the end of 2021.

Seabridge Gold holds a 100% interest in several North American gold resource projects. Its recent acquisition of Snowfield is expected to increase KSM’s existing reserves and enhance project economics. The company’s debt-free balance sheet provides it a competitive edge. Seabridge Gold ranks first in gold and copper reserves among major listed gold companies.  From 2003 to 2020, the company’s gold resources have grown by 915%. In the past 2 months, the Zacks Consensus Estimate for the company’s 2022 earnings has moved up 18%.

Fury Gold Mines is a Canadian gold miner strategically positioned in three prolific mining regions: James Bay (Quebec), the Golden Triangle (British Columbia) and the Kitikmeot Region (Nunavut). It has recently simplified its portfolio through an agreement to divest its 100% interest in the Homestake Ridge gold-silver project. Recent results from the Three Bluffs deposit expansion drilling at its Committee Bay project in the Kitikmeot region of Nunavut present a very promising achievement for the project.

US Gold Corp is a gold exploration and development company advancing high potential projects in Wyoming, Nevada and Idaho. It is focusing on advancing the CK Gold Project located in southeast Wyoming. Its recent prefeasibility study ("PFS") has shown some very attractive results and robust project economics. The company boasts proven and probable mineral reserves of 1.01 million ounces of gold and 248 million pounds of copper. A strong liquidity position and no debt positions moved the Zacks Consensus Estimate for the company’s 2022 earnings up 33%. The estimates currently indicate year-over-year growth of 17%.

Given the impressive production, discounted stock price, and stable gold price in 2021, these gold stocks are a good option to consider in 2022.

Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok