Commodities & Metals

The Case for Gold After Syrian Missile Strikes

The United States sent a powerful message late on Thursday when it reportedly fired off 59 Tomahawk missiles on an airbase that was said to be the staging point for the chemical weapon attacks in Syria. While Syria, Iran and North Korea are seemingly now on notice, investors are seeing repercussions as well.

Gold prices have been on the rise over the course of 2017. In fact it hit a five-month high in Friday’s session as investors are seeking safe-haven investments after the missile strike in Syria. The action had a destabilizing effect in the markets, and it opens up the potential for further military action.

If military action should continue in this region, we might expect to see gold going even higher, acting as a currency hedge. What is for sure is global tensions are rising in the region. The strike is also a show of force for what the United States could do against North Korea if Kim Jong-un continues missile tests.

As we see more and more destabilizing actions take place, gold becomes more attractive as a portfolio- or currency-stabilizing agent. Even gold stocks carry this hedge as well, to a certain degree. 24/7 Wall St. has taken a look at a few gold stocks that are seeing the biggest benefit from this strike. We have compiled a recent trading history, consensus target and a little color on each stock.

Shares of Newmont Mining Corp. (NYSE: NEM) were last seen up 1.7% at $34.76, with a consensus analyst price target of $39.05 and a 52-week trading range of $28.11 to $46.07.

Barrick Gold Corp. (NYSE: ABX) traded up 1.2% to $19.52. The stock has a 52-week range of $13.81 to $23.47 and a consensus price target of $21.05.

Shares of AngloGold Ashanti Ltd. (NYSE: AU) were trading up 3.8% to $12.30 on Friday, with a 52-week range of $9.28 to $22.91 and a consensus price target of $13.70.

Goldcorp Inc. (NYSE: GG) shares were up 1.3%, at $15.01 in a 52-week range of $11.91 to $20.38.

Kinross Gold Corp. (NYSE: KGC) traded up 2.5% to $3.66. The consensus price target is $4.36, and the 52-week range is $2.88 to $5.82.

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