Here’s Why Traders Are Talking about These Five Stocks Today

Gold Stocks on Watch After Commodity Price Hits 28 Month High

Traders are watching gold miners such as Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc. (USA) (NYSE:GG), and Newmont Mining Corp (NYSE:NEM) today after the price of the yellow metal hit a 28 month high yesterday. Although the Brexit vote catalyst is in the rear view mirror, analysts at UBS think gold has more room to run. UBS’s Joni Teves writes:

Our sense is that individual positions are not particularly large, but rather the extent of involvement has been quite expansive. It’s also worth noting that despite the very strong inflows into gold ETFs YTD, global holdings are still some distance away from record highs.

Given the increasing uncertainties in the world, with China’s slowing economy, the potential for a British or EU recession due to the Brexit, and stiffer trade policies if Trump were elected, gold prices could continue higher if the right events occur. If gold prices trend higher, gold miners will benefit with stronger margins and greater revenue. Among the funds in our database, Barrick Gold Corporation (USA) (NYSE:ABX) was the most popular with 49 funds reporting stakes the end of the first quarter. Newmont Mining Corp (NYSE:NEM) was next with 37 funds holding shares and Goldcorp Inc. (USA) (NYSE:GG) was third with 33 funds sporting a position at the end of March.

Disclosure: none