Gold Stocks Rally On Russian Invasion

The effects of the Russian invasion of Ukraine are leading a number of investors back into that old inflation hedge known as gold. The yellow metal hit $1972/ounce on world markets Friday, higher than any of the 2021 price peaks. There might be resistance (or selling, as it’s known otherwise) at the 2020 top of just below 2100.

All of this depends on how badly things can go with Vladimir Putin now threatening that economic sanctions by the West are a declaration of war. Money wasn’t waiting to find out Friday as stocks in the gold mining business had some of their best days in years.

The daily price chart of the SPDR Gold Shares fund, traded on the New York Stock Exchange, looks like this:

Closing the week at higher highs is good for the precious metal and a sign of definite concern about events in Europe.

Here’s the daily chart for the iShares Silver Trust:

Not quite as good a week as gold but notable, at least, that silver’s price rallied to a new 2022 high and made it above the previous November, 2020 peak. It may be significant that the 50-day moving average (the blue line) is turning back up for the first time in awhile.

The daily price chart for Newmont Corporation, the biggest of the NYSE-listed gold miners, is right here:

Would it be great if every stock you owned had a price chart that looked like this? Newmont hits a higher high on good volume and the candlestick is strong and decisive. You can see how the 50-day moving average is crossing above the 200-day moving average, a chart event that’s hard to complain about. Moves like this have a tendency to consolidate at some point but, again, this depends on great geopolitical uncertainties.

The daily price chart for Harmony Gold Mining looks like this:

The South African gold miner is being bought and with greater volume. Take a close look: the price has moved from about 3.50 in late January to Friday’s price of 5.09. That’s a 40%+ ascent in just a few weeks. You can see how the 50-day moving average is now crossing above the 200-day moving average. Harmony can be quite volatile and you can expect some kind of consolidating action at some point.

Here’s the daily price chart for Barrick Gold
GOLD
:

Similar to Newmont and Harmony, this gold mining stock broke out upward to higher highs this week. That shorter-term moving average is about to cross above the longer-term moving average. Barrick is the miner held briefly by Berkshire Hathaway
BRK.A
in 2020. It’s likely those Omaha value investors are keeping an eye on it.

Not investment advice. For educational purposes only.

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