Gold's Record-Breaking Rally, Metals' March Higher Buoy Miners, Canadian Indices
Gold's record-breaking rally and the continued march higher for silver and copper are fueling the rally in mining stocks and Canadian equity indices.
Precious metals extended their rally after Iranian President Ebrahim Raisi was killed in a helicopter crash, fueling uncertainty over the succession of power in the country. Investors are also piling on metals amid speculation that the U.S. Federal Reserve may start cutting interest rates in the second half of this year, boosting the investment appeal of gold and silver which don't offer holders any income.
$Gold Futures(AUG4)(GCmain.US$ climbed to as high as $2,454.20 Monday on Comex in New York. That's an intra-day record for a most-active contract. While the precious metal pared its gains, it's still up 0.4% at $2,428.70 at 4:24 p.m. in New York. $Silver Futures(SEP4)(SImain.US$ advanced 2.2% to $31.935.
Canada's $S&P/TSX Composite Index(.SPTSX.CA$ gained 0.7% to close at 22465.37 in Toronto Monday as mining stocks rallied. The blue chip $S&P/TSX 60 Index(.TX60.CA$ also added 0.7% to 1,342.69.
$New Gold Inc(NGD.CA$ led gains on the TSX index, as the stock soared 13%. $Endeavour Silver Corp(EDR.CA$ and $Silvercorp Metals Inc(SVM.CA$ round out the top three performers on the main gauge. On the TSX 60, $First Quantum Minerals Ltd(FM.CA$ led gainers, climbing 7.5%.
The gold miners' U.S.-traded stocks also rallied.
Uranium producer $Cameco Corp(CCO.CA$ rose for a second day, rising 6.4% to C$72.21 after Bloomberg reported that the U.S. government plans to buy as much as $3.4 billion of domestic nuclear reactor fuel. The government will ask suppliers to bid on contracts, according to the report. $Cameco(CCJ.US$'s shares traded in New York also gained.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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