Gold and Silver had a good week on the back of higher CPI inflation data and a marginal fall in the 10yr yields. The lack of follow-through on Friday among the gold stocks, which could portend a retracement in the near term.
The gold miners’ stocks remain undervalued, strong buys fundamentally. Their stock prices are too low relative to both underlying corporate profitability and prevailing gold prices.
Companies started to report Q1 production results in what was otherwise a quiet week. Gold and silver prices saw nice rebounds, but it is unlikely we have resumed the uptrend.
But over the last five weeks or so, gold stocks have powered higher again in another young upleg. This one has a far-stronger foundation given the underlying gold setup.
“Drilling over 20 meters of 3.60 grams per tonne gold less than one meter below the surface underscores Golden Mile’s potential to become an open-pit mine,” stated Mr. Jason Reid, President and CEO of Fortitude Gold.
“Dividends reward Fortitude Gold shareholders through monthly cash distributions and takes an initial step towards a new metric for the market to value the Company based on dividend yield.”
It was a quiet, holiday-shortened week with little news flow. The metals got hammered early in the week, with gold and silver looking like they were going to break down.....
