Commodities & Metals
What Gold's Best Quarter in 30 Years Really Looks Like for Key Stocks and ETFs
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Coming into 2016, gold seem to be losing its luster, even further than in prior years. That was then, this is now. It turns out that the perfect storm leading into the end of the first quarter of 2016 will have created perhaps the single best quarter for gold going back to the mid-1980s. Gold mining and production stocks have seen their shares surge as well. On Thursday, March 31, gold futures were up roughly 17%, with spot gold trading around $1,235.00.
That perfect storm for gold includes quantitative easing to negative interest rates in Japan and Europe, an unexpectedly weak dollar, geopolitical concerns, a Fed shift from hawkish to dovish, a recovery in the stock market and an expected slower return to normalized interest rates. Then throw in a broad commodities rally as well.
Brokerage firms were not alone in their predictions for gold. Many major gold companies made their capital spending and base cost projections for their budgets in 2016 at closer to $1,000 per ounce — and some even worried about gold potentially going even lower.
24/7 Wall St. wanted to take a look at some key gold stocks. We looked at their performance in the first quarter of 2016, as well as a one-year look back. We also looked at their trading ranges and what analysts think these stocks are really worth. Then we looked at the key gold exchange traded funds (ETFs).
Barrick Gold Corp. (NYSE: ABX) was last seen trading at $13.74 on Thursday, with a $16 billion market cap. Its consensus analyst price target is $13.83 (up from last week), and it has a 52-week trading range of $5.91 to $15.52. The stock was up a whopping 86% since the end of 2015, as well as up 120% from six months ago and up almost 25% from a year ago.
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