Gold Stocks Take The Lead As Trade War Deepens: GOLD, AUY and KGC Lead

Barrick Gold Corp (NYSE: GOLD), Yamana Gold Inc. (NYSE: AUY) and Kinross Gold Corporation (NYSE: KGC) are all making their way to the top in the market this morning, trading on gains of 5.65%, 5.85% and 4.71%, respectively.

I came across the trend when looking at a stock screener ordered by trade volume. Interestingly, GOLD stock, AUY stock and KGC stock represent numbers three, four and five on this list of highest volume stocks trading on significant gains.

GOLD Stock, AUY Stock and KGC Stock lead the charge in terms of volume!

When I saw that gold equities seemed to be the most popular gainers on the market this morning, I went digging for clues as to why. It wasnt hard to find the answer.

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The Trade War Is Leading To A Rally In GOLD, AUY KGC And Other Gold Stocks

The trade war between the United States and China has been ongoing for some time now. It’s a story that constantly seems to make front page news and one that could have a drastic impact on the economies in both regions.

Unfortunately, the Trade War is only deepening as resultions seem to be out of reach following each and every negotiation that takes place. In fact, as I write this article, news is breaking that China is ordering state owned companies to stop purchasing United States agricultural products. The news came in response to the threat made by President Trump to add a 10% tariff to all Chinese goods not already under tariff.

The news is causing quite a bit of turmoil in the market. Moreover, the Chinese Yaun has dipped to below 7 per USD for the first time in more than 10 years. So, what does all of this have to do with Barrick Gold, Yamana Gold and Kinross Gold? Well, everything!

Why This News Is Sending Gold Stocks Up

Gold is the most popular safe haven asset on the market. When investors are concerned that we are going to see a dramatic drop in value in the market, they tend to exit their positions and move toward safe havens.

That seems to be what’s happening as we speak. As the trade war continues to get worse, investors fear that the market is going to take a dive. Take a look at the Dow, it dropped more than 500 points early on today as the trade war news broke.

This is great news for GOLD, AUY and KGC. After all, every one of these stocks represents a company that makes money through the mining and sale of gold. As a result, as the trade war continues on, stocks take a dive, and currency markets get shaken up, these factors push gold up, making it possible for GOLD, AUY and KGC to generate larger revenues from the sale of their goods.

The bottom line here is a simple one. As the trade war continues to deepen, gold and the stocks that represent companies that mine and sell gold are likely to see tremendous gains.

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