Gold miners glitter amid spike in gold prices as Covid, dollar create haven

Shares of gold mining stocks have rallied along with gold itself since the beginning of the year. The move up in gold prices initially was attributed to the degradation of the U.S. dollar at the beginning of 2020, but the move accelerated amid concern and some would panic over the coronavirus pandemic. DROP IN YIELDS AMID STIMULUS: Economies and governments across the globe have responded to COVID-19 with massive stimulus packages to keep businesses and citizens afloat. Investors are fleeing to gold as a safe-haven trade as governments debt loads mount as they spend more. In an article out earlier, Joe Wallace of the Wall Street Journal attributed the recent gold move to “this year’s precipitous drop in yields on U.S. Treasury to levels below the expected pace of inflation.” SHARP RISE TODAY: Gold is rallying with October gold futures last up approximately $29.10 an ounce at $2,003. RECENT ANALYST CALLS: Scotiabank analyst Tanya Jakusconek upgraded Agnico Eagle Mines (AEM) to Outperform from Sector Perform with a price target of $72, up from $65 last week, while BMO Capital analyst Raj Ray downgraded AngloGold (AU) to Market Perform from Outperform with an unchanged price target of $34. PRICE ACTION: Shares of companies in the precious metals space are all higher in late day trading, including Agnico Eagle Mines, AngloGold, Newmont (NEM), Kinross Gold (KGC), Yamana Gold (AUY), Buenaventura (BVN), McEwen Mining (MUX), Gold Fields (GFI), and Galiano Gold (GAU).