Gold, Silver Surge Off of Currency War News - Share Price Updates around the Sector
Gold, silver and other precious metals began to soar last night as the currency war appears to be underway. We'll take a look at the markets today on a somewhat different delivery of Mining Stock Daily.
Hey everybody welcome to Mining Stock Daily today is Monday August 5th. Today's format will be a little different today as the Canadian markets are closed, so the U.S. markets appear to be reveling in all the fun and volatility. After consolidating Thursday's move over $1450 on Friday, futures basis the price of gold shot up $16 overnight in response to the won plunging below the key technical level of seven versus the dollar. The U.S. dollar plunged nearly 0.5% versus the dollar index basket of currencies which include the euro, yen, pound and Swiss franc. The Mining Stock Journal said the move by China to allow the won to fall below seven signals an escalation in the trade war and triggered a global flight from risk assets into gold, silver and contra dollar currencies such as cryptos. The Mining Stock Journal and also noted that it appears as if true price discovery has been reintroduced to the precious metals sector which could push gold and silver significantly higher for the rest of the year. The newsletter also commented that it expects a big move in the Junior Mining stocks which have lagged the rest of the mining stocks sector of up to this point.
Today's briefing is sponsored by Minera Alamos. We'd like to welcome Minera Alamos back to the show. Minera is traded with the symbol MAI on the TSX Venture Exchange and with MAIFF on the US OTC markets. Minera is an advanced stage exploration and development company with multiple low CapEx projects in Mexico. You can read more about their development strategies at mineraalamos.com.
Let's take a look at some of the movers today especially traded on the U.S. major markets. At the time of recording the Dow Jones Industrial is down over 2%. The S&P 500 down 59 points to 2873 and the Nasdaq is taking a hit as well, nearly down 2.5% this morning. The major metal producers are obviously doing well. Barrick is up almost 5% to $17.74, Newmont up over a $1 to $37.96 and Hecla Mining backed up over $2 this morning with an 8% raise in their stock price. I am gold pushing near that $4 mark, up nearly 7% while McEwen Mining up $0.11 to $1.96. Kirkland Lake up over $3 to a new 52 week high. And Americas Silver has added another $0.20 to their share price which now stands at $3.05.
Upward moves were also rewarded for some of the royalty and streaming companies in the industry. Royal Gold is up 3.5% this morning, Franco-Nevada up over 2.5% and Maverix Metals adding more than 5% this morning as well, hitting $5.25. The GDXJ crushed its recent 52 week high with a new number at $41.34 and the GDX is in similar suit at $28.92.
And there's some news and commentary before we depart. Pretivm released its second quarter results on Friday. Production and revenue were down considerably as expected as the company chewed through a lower grade section of the Valley of the Kings deposit at the company's high grade Brucejack Mine. The company still expects to meet its full year production goal of around 400,000 ounces. The Mining Stock Journal considers Pretivm to be significantly overvalued relative to other mining companies that produce 300,000 to 500,000 ounces of gold per year and would avoid the company's shares which trade under PVG on the NYSE and the TSX.
That concludes today's briefing. We will be back again tomorrow with hopefully really great news out of the Junior Sector with gold and silver and other precious metals rising. Possibly back to similar format as news keeps rolling in from most of our friends up in Canada.
Mining Stock Daily is produced by Clear Creek Digital and Investment Research Dynamics' Mining Stock Journal. My name’s Trevor Hall have a great day and for my Canadian listeners be well and enjoy your day off, but don't look at the charts too much. Have a great day. Be well, take care. See you tomorrow.
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