The price of gold has been on a roll this year so far and considering the recent events, it would not be a surprise if it keeps climbing. On Wednesday, the Federal Reserve decided to hold the interest rate. This was amid widespread demands for a rate cut.
It was further announced that rates were not going to be cut this year at all. That created uncertainty in the markets and investors soon started parking their money in more secure assets like gold. The price of gold is now nearing $1400 an ounce, a price that it had last reached back in 2013.
However, it has also led to a lot of interest in gold penny stocks and silver penny stocks. This could generate significant returns during the current gold stock rally. Just look at the performance of the SPDR Gold ETF (GLD ETF Report) Investors are growing quite optimistic about the price of gold. This resulted from the slowdown in the United States economy and the trade tensions. Here is a look at few gold penny stocks to watch after they recorded significant gains this week.
Gold & Silver Penny Stock #1
Yamana Gold (AUY)
Yamana Gold (AUY Stock Report)’s presence in the Cerro Moro mine has been one of the biggest reasons behind the optimism about the company. Although Yamana could not deliver on its early promise, it has since ramped up production considerably.
The output of gold in Q1 2019 rose by 18% year on year. This was all while the same results showed for silver, increasing by 235%. The stock gained 9% on Thursday. AUY stock has gained about 20% since the beginning of June. This helped put it on the list of gold stocks to watch in June.
Gold & Silver Penny Stock #2
Coeur Mining (CDE)
The other gold stock that rose in June was Coeur Mining (CDE Stock Report). It experienced a 10% rise amidst the rally in gold prices, but it is necessary to note that the company has had its fair share of troubles.
In Q1 2019, its output in both gold and silver dropped considerably. But it is expected to produce more of both once it starts mining in the higher grade sections of the Palmarejo mine. CDE stock has jumped about 45% so far this month.
Gold & Silver Penny Stock #3
NovaGold Resources (NG)
The last stock to look at: NovaGold Resources Inc (NG Stock Report). The company develops gold mining properties in Canada and the US. The company’s main asset is the Donlin Gold property located in Southwestern Alaska. Following the rally in gold prices, its stock rose by 5% on Thursday and made a new 52-week high of over $5.20.