While the Dow Jones Dropped 700+ Points, These 12 Gold Stocks Were Up Over 5%
It was a bad day on the markets on Monday. However, the stocks listed below had good days and were not only positive, they were up by more than 5%:
With earnings data and a lot of stock-specific news potentially impacting returns, it may be hard to filter out some of the impact the markets had versus the markets, but there’s one clear trend here:
Tyson Foods had earnings today which explained its big spike up in price. Besides that, it’s clear that gold was the sector to invest in today. It’ll be interesting to see if the trend continues now with China-U.S. relations seeming to get worse by the day. Remember, these were only the large gold stocks ($1 billion or larger) that were up more than 5%, there were smaller ones as well as ones that had smaller gains that didn’t make this list.
Similarly, the price of gold was also up today, climbing to over US$1,470/ounce. You have to go back to 2013 for the last time that gold was this high. A year ago, it was trading at just around US$1,200/oz.
Typically, investors rush to gold in times of instability and concern for the markets, and so this may not be a big surprise given how tumultuous the past year has been with trade wars and tariffs making a lot of the headlines. Despite the markets still performing strongly, many investors have looked for safer options for their money. And with more interest rate cuts looming and concerns for a recession on the way, there may be no better time than to buy gold stocks than right now.
The financial crisis that happened more than 10 years ago would lead to a spike in the price of gold, which eventually peaked in 2011 when it climbed to more than US$1,900/oz. We’ve still got a long way to go from those levels, but it’s definitely something to keep an eye on going forward.
Disclosure: The author of this article does not hold any shares of the stock(s) mentioned. This article is not a substitute for financial advice and this is not intended to persuade investors to buy or sell the stock(s) mentioned. Investors are recommended to seek professional investment advice or do their own analysis before making a stock purchase.