On March 28, we noted, “With gold quickly approaching $2,200, keep an eye on Newmont Mining (NEM). At the moment, it’s consolidating at $34. But with gold on the run, we believe NEM could break significantly higher from here.”

With gold now up to $2,350, NEM is now up to $40 a share and could push higher.

For one, central bank buying isn’t showing any signs of cooling off, with China buying even more for the seventeenth month in a row, says The Wall Street Journal. Two, issues in the Middle East and speculation the Federal Reserve may soon loosen its monetary policy have also been key drivers of gold’s upside. 

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Also, according to VanEck’s portfolio manager of gold and precious metals strategies, Imaru Casanova added that “In recent years, rallies of this type have often been followed by periods of consolidation around an established, higher level, with the metal trading in a sideways pattern until a new catalyst emerges driving prices even higher. 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 Investing.com.

Sincerely,

Ian Cooper