Pervasive fear of a market rout is driving shares of major gold companies higher as investors flee to the traditional safe haven of the yellow metal, data compiled by Proactive Investors showed Thursday.
From South Africa to Canada, the United States to Australia, stocks of the biggest gold producers in the world lifted higher one day after the Dow Jones Industrial Average posted its third-biggest single-day point loss in history as the index dove 830 points during the session.
Barrick Gold (TSX:ABX) stock climbed 9.76% to settle at C$16.475. Barrick was ranked as the biggest gold mining company in the world in 2017, according to specialist website Mining.com. Goldcorp Inc (TSX:G) saw its shares in Toronto climb 7.42% to close at C$14.18.
Like most major gold companies, the two have their shares also listed in New York.
Goldcorp (NYSE:GG) stock in New York was up 6.92% to finish at US$10.81 while those of Barrick (NYSE:ABX) jumped 9.57% to end at US$12.60.
"Gold is finding a bit of support from the global sell-off seen in equities. If this (sell-off) persists, we will start seeing more of a move to gold as a safe-haven asset," ING analyst Warren Patterson said in a report by Reuters.
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SPDR Gold Shares (NYSE:GLD), the largest physically backed gold exchange-traded fund in the world, was 2.52% higher to end at US$115.72.
South African gold company DRDGold Ltd's (NYSE:DRD) US-listed shares added 4.48% to settle at US$2.33.
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In the US, shares of Denver-based Newmont Mining (NYSE:NEM) went up 7.04% to end at US$32.71. The company is ranked as the second biggest gold mining company in 2017.
Newcrest Mining Ltd (ASX:NCM) (OTC:NCMGY) was the only stock so far on Thursday not to post gains as it ended in Australia nearly flat at A$19.30, off A$0.01 for the day. In New York, the share was up 3.46% to close at US$14.12.
"Rising US yields and general strength in the dollar have meant that investors have largely ignored gold. But people are seeing fairly good value at current levels on the back of some macro concerns," Patterson said.
Reporting by Rene Pastor, contactable at [email protected]