The midsummer lull was in full effect Thursday, with investors flocking to coastal retreats across the nation and hardly anyone anticipating a gold price surge.
So it's actually quite fitting that gold and silver shot upwards yesterday.
I've already addressed much of yesterday's market movements in a Golden Opportunities bulletin sent to our complimentary subscriber list, and my tropical cocktail mix is simmering on the stovetop, so I'll keep this alert relatively concise.
As of the latest update, spot gold had climbed US$24.70 (1.06%) to US$2,353.90 bid. Silver was demonstrating the multiplier effect we appreciate, soaring US$0.89 (3.03%) to US$30.39. Platinum held steady at US$997, while palladium gained US$15.00 (1.49%) to reach US$1,020.
Gold-related equities pulled their weight, with the GDX advancing 3.70%, the GDXJ surging 4.42%, the XAU increasing 3.61%, and the Gold Bugs Index (HUI) rising 3.59%.
All in all, yesterday was a rewarding day for precious metals enthusiasts.
As I mentioned in our other publication, gold's performance has been textbook since I notified readers that the converging Bollinger bands were signaling an imminent breakout.
However, I won't declare success just yet, as the major employment report for June is due today, presenting both potential risks and opportunities for gold.
Yesterday's gains follow Jerome Powell's accommodative remarks yesterday in Portugal, along with some softening labor market indicators. The Fed minutes released today didn't significantly impact the market, as the upward trends in gold and silver were already well-established upon their release.
In the junior mining sector, news has been sparse lately. One notable recent development was Prospector Metals Corp.'s (PPP:CVE) announcement of a strategic equity investment by B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), involving 5.6 million common shares for approximately CUS$909,000. It seems B2Gold was as impressed as I was by Prospector's ML project in the Yukon.
Following the tailings incident at Victoria Gold Corp.'s (VGCX:TSX; VITFF:OTCMKTS) Eagle Mine, this investment also provides much-needed, validating news for the Yukon region overall.
There's no rush regarding the Prospector story at present, as the company isn't planning to drill until next season. So take your time, but keep it on your radar — this is an excellent project that will eventually capture market attention.
As a quick aside, I had discussions with Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) and Arras Minerals Corp. Arras Minerals Corp. (ARRKF:OTCMKTS) Wednesday and was impressed by both.
Sierra Madre is swiftly advancing its La Guitarra silver and gold mine in Mexico towards production, with test mining set to begin soon, while Arras controls an extensive land position in Kazakhstan that it's exploring for world-class copper projects in partnership with Teck.
Neither of these opportunities requires immediate action, as key catalysts are still a month or two away. However, while I haven't yet made them official recommendations, I wanted to share that I was very impressed with their potential and am likely to issue official recommendations in the near future.
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Gold Newsletter Alert is published by Jefferson Financial, Inc., 2117 Veterans Memorial Blvd., #185, Metairie, LA 70002. For subscription details, call 800-648-8411 or send e-mail to admin@jeffersoncompanies.com. Neither the author, the publisher nor their affiliates have been compensated for these recommendations. The publisher, the author and their affiliates actively trade in investments discussed in Gold Newsletter and Gold Newsletter ALERT. They may have a position in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal or investment-related advice, news and editorial viewpoints on the investments discussed herein. ©2024 Jefferson Financial, Inc. All rights reserved.
