Precious metals and gold stocks are once again on the move, helped by both brewing tensions in Ukraine as well as volatility in the currency markets.
Russian troops and material are amassing on the Ukrainian border, either in a show of force or a prelude to an incursion into the eastern, pro-Russian area of the country. Moscow apparently has Crimea locked up heading into a popular referendum vote on independence scheduled for Sunday. Despite protests from the West, it doesn’t look like anyone can prevent the annexation of the historically Russian peninsula back into the fold.
Currencies are being rattled by a breakdown in the carry trade as the yen strengthens and the euro drops. Catalysts for these moves include a lack of new stimulus hints from the Bank of Japan after its monetary policy meeting this week and hints by the European Central Bank that new, extraordinary easing measures are being prepared.
In the global game of currency devaluation, driven by whoever abuses their currency the most, the balance of power could be shifting from Japan to Europe. And that means that hedge fund types are scrambling to unwind pair trade positions involving short yen/long euro bets.
Amid the chaos, safe haven assets like gold (GLD) are perking up in a big way — bringing buyers back into a sector that I think will continue to be a big performer throughout 2014. Here are three gold stocks to buy that are currently on the move: