Gold stocks surged higher on Monday thanks to election uncertainty in Europe as anti-establishment, populist candidates in the vain of President Donald Trump are poised for possible electoral upsets in Germany, France and Italy in the months to come.
Lagging poll numbers for German Chancellor Angela Merkel has pushed German sovereign risk measures to levels not seen since last year’s Brexit surprise.
In response, the SPDR Gold Trust (ETF) (NYSEARCA:GLD) has lifted out of a two-month trading range to hit levels not seen since the middle of November. That, in turn, lifted Newmont Mining Corp (NYSE:NEM) — among the largest gold mining stocks — to early November highs in a push above its 200-day moving average.
Edge subscribers took advantage of the move via the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ), which has gained north of 8% over the past two trading days.
Back to NEM stock, the company enjoyed an upgrade from analysts at Standpoint Research back in December. They are looking for a price target of $42, which would be worth a 12% move from here.
The company will next report results on Feb. 21 after the close. Analysts are looking for earnings of 35 cents per share on revenues of $1.8 billion.
For the fundamentalists out there, the biggest recent news for NEM stock was the first successful gold pour out of the Long Canyon mine in Nevada back in November — representing the most important oxide ore discovery in the state in more than a decade.
The company is targeting production of between 100,000 and 150,000 ounces of gold per year over an estimated eight-year mine life with an all-in sustaining cost of between $500 and $600 an ounce.
On Tuesday, NEM stock is experiencing a bit of profit-taking, down 1.2%. GLD is down 14 basis points, while GDXJ is up 0.64%.