GOLD STOCKS NEWS – Gold stocks rallied Friday as the Market Vectors Gold Miners ETF (GDX) advanced $0.72, or 1.1%, to $63.52 per share. Gold stocks and the GDX were lifted by a rebound in the gold price, which climbed back above $1,800 per ounce this morning. In Canada, gold stocks jumped alongside the GDX, with the S&P/TSX Global Gold Index moving higher by 1.1% to 427.68.
Gold stocks received a strong endorsement from HSBC on Friday, as the firm raised its 2012 gold price target to $2,025 from $1,625 per ounce. In the firm’s report, HSBC analyst James Steel wrote that “Gold is benefiting from growing investor anxiety about ineffective government policies, unsustainable government debt levels, and the potential for a further global slowdown.”
Based in part on its improved outlook for the yellow metal, HSBC upgraded and raised its target price on a host of large-cap gold stocks that are also components of the GDX, as follows:
Harmony Gold (HMY) – upgraded to Overweight from Neutral with $17 target
IAMGOLD (IAG) – upgraded to Overweight from Neutral and raised target to $30 from $24
Newmont Mining (NEM) – upgraded to Overweight from Neutral and raised target to $116 from $92
Yamana Gold (AUY) – upgraded to Overweight from Neutral with $20 target
HSBC also raised its target on Randgold Resources (GOLD) to $165 from $120 and reiterated its Overweight rating, but downgraded Royal Gold (RGLD) to Neutral from Overweight but raises its price target to $89 from $76
In late morning trading, HMY rose by 3.1%, IAG by 3.8%, NEM by 0.9%, and AUY by 3.2%. GOLD also advanced, by 2.3%. RGLD bucked the trend of lower gold stocks, as the downgraded weighed on its shares by 0.7%.
Other notable gold stocks moving higher included GDX components Barrick Gold (ABX), Goldcorp (GG), and Kinross Gold (KGC) – which rallied 0.7%, 1.2%, and 1.7%, respectively.
Colossus Strikes High Grade Gold at Serra Pelada
- Hole SPD-113 intersected several ultra high-grade subzones within a continuously mineralized intercept of 74.4m at 31.17 grams per tonne (g/t) gold, 3.02 g/t platinum and 6.78 g/t palladium in the Central Mineralized Zone (CMZ).
- These results confirm the continuity of and extend the high-grade CMZ in the first area to be underground bulk sampled in 2012.
- Hole SPD-115 intersected 11.65m at 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/t palladium.
- A detailed geochemical program is nearing completion on the entire concession package and new targets have been generated.
