Capitalizing on Gold’s Momentum: 3 Stocks to Watch in April

Stocks to buy

The run-up in gold prices isn’t over just yet. In fact, with Middle East tensions boiling over, and a pickup in safe-haven demand, the metal could test $2,700 this year, says Goldman Sachs. Roth MKM analysts also believe gold could range between $2,500 and $2,600 this year. All of which could send some of the top gold stocks to higher highs.

Central bank buying isn’t slowing either. China’s central bank, for example, just bought even more gold for the seventeenth month in a row, says The Wall Street Journal. All of this is fueling speculation over the potential devaluation of the yuan, “amid geopolitical concerns over heightened aggression with Taiwan.”

In addition, VanEck’s portfolio manager of gold and precious metals strategies, Imaru Casanova added, “The return of investment demand, as evidenced by inflows into global gold bullion ETFs, could be that catalyst, with a potential to drive gold higher,” as quoted by Seeking Alpha.

Last trading at $2,372.16, gold still has plenty of upside, which will be a powerful catalyst for top gold stocks.

Barrick Gold (GOLD)

Source: Shutterstock

Over the last few weeks, shares of Barrick Gold (NYSE:GOLD) ran from about $13.67 to a high of $18.95. And while it has since slipped back to $16.71 after failing at double-top resistance, it appears to have caught support and is ready to push higher. 

Initially, I’d like to see GOLD refill its bearish gap at around $17.40. From here, if it can break above resistance at $18.95, it could test $20.24 shortly after.

While the company reported lower-than-expected first-quarter preliminary gold production numbers, it did reaffirm it expects to achieve full-year production guidance. Plus, with gold and copper prices racing, it should more than makeup for the latest production issue. In addition, company profits and margins should do meaningfully well with gold and copper prices.

Helping, in late February, analysts at Jefferies initiated a buy rating on GOLD with a $21 price target. The firm believes there are several positive developments ahead that should send the stock higher, “particularly starting in 2025,” according to Investing.com.

Newmont (NEM)

Source: Piotr Swat/Shutterstock

Another one of the top gold stocks to buy is Newmont (NYSE:NEM).

Since bottoming out at around $29.19, it hit a recent high of $41.30. While it did pullback to its 200-day moving average at around $37.43, it’s starting to pivot higher again. Last trading at $38.50, I’d like to see it initially retest its prior high. Better, it yields 2.6% at the moment. 

While we’ll soon see its first-quarter numbers on Apr. 25 at 11 am EST, we can take a look back at fourth-quarter numbers for an idea of how well NEM has been doing. In that quarter, Newmont generated about $4 billion — up 24% year over year. Its adjusted net income was 50 cents, which was six cents better than estimates.

Plus, analysts at Jefferies have a buy rating on the NEM stock with a price target of $38. The firm noted that the “company’s ability to streamline ops, build through acquisition, and boost production all bode well going forward,” as quoted by TipRanks.com.

B2Gold (BTG)

Source: Shutterstock

There’s also B2Gold (NYSE:BTG), a Canadian mining company that owns and operates gold mines in Mali, Namibia and the Philippines.  BTG operates the Fekola Mine in Mali, the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia. It also has 100% interest in the Gramalote gold project in Colombia.

After jumping from a low of about $2.30 to a high of $3.07, it recently pulled back to $2.60 and is starting to bounce. Last trading at $2.68, I’d like to see BTG retest $3.07. From there, it could potentially test $3.40 on strength in gold prices. It also recently paid out a 4 cent per share dividend on Mar. 20. We expect to see more shortly. Analysts at Jefferies also have a buy rating on the BTG stock, with a price target of $3.50

Plus, should we see an interest rate cut from the Federal Reserve this year — hopefully — gold stocks like B2Gold could easily push higher. 

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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