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Gold prices had fallen to a four-month low in early August to $1,677.90 per ounce due to a rush to buy U.S. dollars in lieu of gold as the Fed signaled a prospective hike in interest rates. However, spot gold prices rebounded quickly to trade at $1,828.74 per ounce earlier this week, its highest price since September. The rebound can be attributed to the central bank’s intention to not raise the benchmark interest rates anytime soon. Furthermore, analysts expect gold prices to be buoyed by a decline in U.S. Treasury yields after this week’s Producer Price Index showed that wholesale inflation is decelerating.
Given this backdrop, we think fundamentally sound gold mining stocks of Centerra Gold Inc. (CGAU), Torex Gold Resources Inc. (OTC:TORXF), and Jaguar Mining Inc. (OTC:JAGGF) could be solid bets now.
