Great news for gold stocks today, as miners got a second wind thanks to a huge uptick in gold prices. While some gained more than others, everyone got at least something. New Gold (NYSEMKT:NGD) added around 2.8% in Friday afternoon’s trading, and that was just the start. Endeavour Silver (NYSE:EXK) jumped over 8%, while First Majestic Silver (NYSE:AG) shot up over 9%. Coeur Mining (NYSE:CDE) surged over 12%, and the leader of them all, Hecla Mining (NYSE:HL), blasted up over 13%.
The major surge in mining stocks came thanks to a development that gold bugs have been expecting for weeks: a return to over $1,900 per ounce of gold. The gain was mostly attributed to the Israel-Hamas war and an accompanying desire for a “safe haven” asset to help ameliorate some of the risks that war generates. Plus, there’s a distinct possibility that United States interest rates may finally have peaked, especially given how much it’s costing the United States to keep those rates up.
Interestingly, this news comes just days after some were asking if the “reversal” in junior mining stocks would last. While some believed that, indeed, the bearish outlook would continue based on trend lines, it looks like the slump in gold mining is at least taking the weekend off. However, in Hecla Mining’s case, that hefty run-up is also attributable to an upgrade from Roth Capital. Roth pushed Hecla from Neutral to Buy, looking for “…improved results in 2024 and an H2 2024 recovery in precious metals prices.” That recovery came sooner than Roth likely expected, though how long it will stick is anyone’s guess.
What are the Best Gold Mining Stocks to Buy?
Turning to Wall Street, the leading force in upside potential is Moderate Buy EXK stock, whose $5.36 average price target gives it 118.26% upside potential. Meanwhile, the laggard in the field is NGD stock, whose $1.45 average price target allows it only 33.03% upside potential.
