Active Stocks: Kinross Gold Corporation [NYSE: KGC] was one of the more resilient stocks in Monday trading. The company closed the day with gains of 4.60%. While it’s not a huge percentage, it’s an indicator of strength considering that the stock markets were weak overall. KGC’s gains were driven by Q2 results that beat analyst expectations. The company had net earnings of around $71.5 million, which represents an EPS of about 6 cents. Analysts were expecting an EPS of roughly 3 cents per share. Revenues also rose to about $837 million.
KGC has been trading in a bullish pattern for awhile now. With the over all market uncertainty it has definitely helped fuel stocks like KGC. The stock market sold off the past few days and may slide further today. This slide follows a decision by the U.S to declare China, a currency manipulator. It’s a big deal, one that has marked a major escalation of the trade war. The Dow and the NASDAQ have dropped sharply since this was announced.
With the current environment, KGC and other precious metals miners are likely to keep gaining. That’s because, as global economic uncertainty rises, money normally has shown to flow into safe havens. Gold has been one of the most popular safe investments in times of crisis. At the moment, gold is surging and is currently trading at a high of $1475.90. As this uncertainty persists and gold prices rise, KGC is likely to fetch more from its gold sales.
In the day, its price could be affected by U.S markets price action. If the selloff continues, and precious metals keep gaining, KGC could continue its bullish trend. However, if the market rallies which it might, then KGC and other precious metals stocks could pull back today and in the near term.