Gold stocks have been rallying on the rise in gold prices this quarter. This has been due things like the United States-China trade war and uncertainty regarding the U.S. Federal Reserve’s stance about interest rates. In an uncertain investment environment, people look for safe-haven stocks and gold recently emerged as one.
The price of gold climbed steadily but it seems that it may continue in the near future. Gold futures ended at a significantly higher price on Wednesday due to the weakness in the U. S. Dollar. Fresh uncertainty regarding rate cuts also helped fuel the concern. You could say that volatility in gold could be just as high as volatility as penny stocks.
In addition to that, the publication of the Federal Reserve’s Beige Book and the observation that the economy is growing at a modest rate stoked further panic. Overnight, the price of gold had fallen but prior to the publication of the aforementioned beige book, it climbed by as much as 0.9%.
It actually hit $1,424 an ounce. In such a situation, silver and gold stocks made some important moves as well. Here is a look at 3 penny stocks which one should keep an eye on over the coming days.
Penny Stock To Watch #1: Kinross Gold Corporation (KGC)
Kinross Gold Corporation (KGC Stock Report) has been one of the biggest gainers over the past couple of months. The penny stock has gained as much as 40% to date from the beginning of May. However, the momentum might still continue as was demonstrated yesterday.
KGC stock jumped to a new high of $4.16. The company is going to announce its quarterly results at the end of the month. Based on other gold stock earnings it may be a penny stock to watch until the big day.
Penny Stock To Watch #2: Alexco Resource (AXU)
The second gold stock to watch this week is Alexco Resource Corp. (AXU Stock Chart). The penny stock has been on a strong rally since the beginning of June. Since then, AXU stock climbed by as much as 60% and on Wednesday, it made significant gains again.
Shares of Alexco rose by 15% amid the price action in the global gold market. Towards the end of June, the company had also started exploration in the highly important Keno Hill Silver District. So with these newer developments and rising gold prices, AXU stock will be on the radar in July.
Penny Stock To Watch #3: Silvercorp Metals (SVM)
Last but not least, Silvercorp Metals Inc (SVM Stock Report) is another penny stock in this sector that has been on an impressive run. This started at the beginning of June. SVM stock has climbed 45% during the period. On top of this, the gold rally on Wednesday saw the gold stock hit $2.90 per share.
This set a new high for Silvercorp. Back in May, the company had announced its Q1 2019 financial results. It had generated revenues of $35 million and managed to make a profit of $12.1 million as well.