Dallas, Texas 09/28/2015 (Financialstrend) – Gold stocks are gaining in popularity of late and Financials Trend is here to report on it for our readers. Our Chief Editor believes these three gold stocks; NYSE: VGZ, NYSE: AUY and OTC: WKLN bear watching this week.
Vista Gold Corp. (NYSE:VGZ) rose over 16% last week making it one of the top gold stocks showing market appreciation. But Vista Gold Corp. (NYSE:VGZ) wasn’t alone as Yamana Gold Corp. (NYSE:AUY) booked a healthy gain of 6.2% for the week. In the micro-cap gold stock category, Walker Lane Exploration (OTC:WKLN) rose 9%.
Gold stocks like VGZ, AUY and WKLN weren’t alone as gold stocks in general reacted to positive trading in gold bullion, finishing the week up over $20 per ounce at $1154.
Fueling the rise in gold stocks like Vista Gold Corp. (NYSE:VGZ), Yamana Gold Corp. (NYSE:AUY) and Walker Lane Exploration (OTC:WKLN) was a turnaround in gold bullion prices, though a trend apparently is developing that very well may continue to lift gold stocks in the near term, says Money Morning Resource Specialist Peter Kraust.
“This sector gold stocks has been mired in a correction since late 2011, but signs increasingly suggest that’s coming to an end,” said Kraust.
TheDailyGold’s Jordan-Roy-Byrne, CMT agrees. “We plot weekly data for Gold/ACWI (global equity ETF) and Gold/NYSE in the chart below. These ratios have started to move in favor of Gold. Both ratios tested the 80-week moving average in January 2015 and then again in August 2015. The ratios are very likely to close this week above the 80-week moving average for the first time in three years,” noted Jordan in post this morning.
After hitting a low of $1,078 per ounce in late July, gold has since fought its way back to $1,152 – a 7% rebound. Yet gold stocks haven’t shown the same recovery rate and Financials Trends believes there is ample room for further gold stock recoveries.
Walker Lane Exploration, Inc. (OTC:WKLN) is braced for the highest chance of price appreciation in comparison to Vista Gold Corp. (NYSE:VGZ) or Yamana Gold Corp. (NYSE:AUY). Both (NYSE:VGZ) and (NYSE:AUY) are producers while Walker Lane Exploration (OTC:WKLN) is focused on building a portfolio of what it terms ‘economical properties’. Taking a closer look at the Nevada-based gold exploration company FT sees upside potential when looking at gold stocks facing a near-term correction in commodity prices. We believe Walker Lane Exploration (OTC:WKLN) may be adding more properties this year and investors in gold stocks seem to agree, having pushed the gold exploration company’s shares up 9% last week. Yet its 52-week hi was $1.95, leaving massive upside potential in comparison to its gold exploration counter-parts listed in Canada that are dropping properties due in large part to lack of capital being available north of the border.