Gold prices and gold stocks jumped Friday after investors raced back to the precious metal for the same reason stocks fell — new tariff worries. Several gold miners flashed buy signals.
The price of gold climbed 1.4% to $3,340.80 an ounce, according to FactSet. Gold prices are up nearly 5% from the closing low of $3,187.20 on May 16 but still about 2.5% below the high of $3,422.80 on May 6.
Gold prices had backed off from record highs this month as the tariff war cooled off. But investors started going back into gold as Treasury yields climbed this week. On Friday, new tariff threats from President Donald Trump added to demand for gold.
Trump threatened a 50% tariff on European Union imports starting June 1, saying negotiations haven't made enough progress. Treasury Secretary Scott Bessent also voiced frustration with the EU's proposals. In addition, Trump threatened a 25% tariff on Apple's iPhones unless they are made in the U.S. Apple plans to move some iPhone work from China to India.
Gold Prices Send ETFs Higher
VanEck Gold Miners ETF rose more than 2% to 50.25 and cleared a trendline entry around 49.75. Arguably, it cleared a lower trendline entry around 40 on Wednesday.
IBD's gold and silver mining industry group climbed 1.9% in morning trade, the second-best performing industry group after nuclear-fueled alternative energy.
Gold stocks, including many that had made sell signals more than a week ago, are rebounding. Curiously, their gains Friday came in light volume, which suggests institutions aren't necessarily pouring into these stocks.
Newmont rose 1.8% to 53.63 as it forms a large cup-with-handle base. The buy point is 57.16, but a trendline drawn across the handle's highs shows a possible entry around 52.50.
South Africa-based Harmony Gold Mining rose more than 4% and is finding support at its 50-day moving average, its IBD MarketSurge chart shows. That's a buy area for the stock, although light volume undermines the entry.
Kinross Gold, which is based in Canada and also has mines in the U.S., Brazil, Mauritania and Chile, rose 1.9%. Notably, the stock found firm support at its 50-day line, and has hardly broken below it since the stock broke out of a base on Jan. 28.
AngloGold Ashanti, another South African gold producer, also has held above its 50-day line from the start of its advance in January. AU rose more than 3% on Friday.
AngloGold, Kinross and Harmony all have a perfect 99 Composite Rating.
Canada's Agnico-Eagle Mines rose 2.6% to 117.55 and is up more than 10% this week as it rebounds back above the 50-day line. The stock cleared a trendline around 113 Wednesday.
Barrick Mining rose 1.8% Friday morning. The stock climbed back above its 200-day moving average Tuesday but is testing resistance at the 50-day line. It has fallen as much as 12% below the 19.89 buy point of a handle breakout on April 11.
Royalty Plays Also Follow Gold Prices
Wheaton Precious Metals, which doesn't own mines but holds agreements for gold and other minerals, rose 2.4% Friday. The stock is near alternative buy points at 86.55 and 87.42 and is on track for a record close.
Franco-Nevada fell as much as 2% below its 50-day average earlier this month but is now 3.6% above it, climbing 2.4% on Friday. It appears to be forming a flat base, while flashing a trendline entry. Triple Flag Precious Metals is finding support around its 50-day line. Both are Canada-based royalty plays.
Eldorado Gold rose 1.2% to 19.68. The Canadian miner, which also operates in Turkey and Greece, is consolidating between 17 and 20.65.
South Africa's Gold Fields and DRDgold regained their 50-day moving averages. Alamos Gold remains below its 50-day line.
These gold stocks have a 21-day average true range (ATR) of less than 6%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
