To The Moon

On Friday (20 Oct 2023) we have seen Gold prices break above $2,000 per ounce to trade at its highest since early August 2023. There is rising worries about the potential spread of the Israel-Hamas war in Middle East and over the weekends, we have seen some conflict attack again.

These events have led investors to go into Gold (which is a safe-harbor metal) on Friday ahead of the weekend.

In this article, I would like share with you on 2 Gold mining shares who have been among the Top Gap up stock on Friday (13 Oct) and they have also closed significantly well.

I will be analyzing why these 2 stocks would have much potentials for more upside. Do note that these 2 stocks are also posting their earnings over the next few weeks.

Gold Mining Shares Among Top Gap Up On 20 October 2023

$Barrick Gold Corp(GOLD)$ has a 0.3% Gap Up and close with a 1.69% gain, its has been gaining for 6 straight daily session and this is the 12th increase in its past 13 sessions.

$Anglogold Ashanti(AU)$ has also gain 3.29% at the end of Friday (20 Oct) session after having 1.4% Gap up earlier in the session.

Due to the huge amount of uncertainty around Israel and Gaza, investors are now going into risk aversion by placing more into safe-haven assets.

As fears of another Fed rate hike in 2023 went down as markets expect the Fed will keep rates on hold at its policy meeting next month, according to CME FedWatch.

So far we have seen Gold erasing post-CPI losses more than ever and it is also surging aggressively towards its resistance. This has raise the probability of a higher breakout.

I will be looking at how the Technicals fared for AU and GOLD. This should give us an idea of how we can trade these 2 stocks. Gold close at more than $1,980 at 5pm on 20 Oct.

Technical Indicators - Simple Moving Average (SMA) - 50-day MA period

Anglogold Ashanti (AU)

AU is trading above the 50-day MA period quite comfortably and it has started only for a while, so with the investors looking to park their monies in safe-haven assets. I believe AU should be able to benefit from it.

Barrick Gold (GOLD)

GOLD similar to AU have been trading above its 50-day MA period but also short period as of now, with the demand for Gold amidst geopolitical tensions, investors would likely favored safe-haven related stocks. One of them would be GOLD.

Technical Indicators - Average Directional Index (ADX)

Anglogold Ashanti (AU)

ADX is currently at 25 mark which indicate a developing trend and +DI is above -DI suggesting a bullish upside, but something I would look out for is investors interest for the stock upcoming earnings.

The tensions between Israel and Hama might cause investors to look for safe-haven stocks or rather related stocks. But investors sentiment and interest is important as there are quite a number and which have better potential.

Barrick Gold (GOLD)

Similar to AU, ADX is also between 20 and 40 indicating a developing trend and +DI is above -DI, but the margins in this case is wider. This could be a longer bullish upside.

Like I mentioned earlier, it would be better to find signal on how traders and investors would be thinking and making a move on their trade.

Technical Indicator - Relative Strength Index (RSI)

Anglogold Ashanti (AU)

From the RSI, we are not seeing any clear signal on how the share have been moving, the recent gap up and upside might be due to data showed U.S. retail sales topped expectations and industrial production improved last month, likely reinforcing the case for the Federal Reserve to keep interest rates higher for longer.

Barrick Gold (GOLD)

Whereas we can see that GOLD RSI have went into the overbought region, this normally would have traders and investors looking to go “LONG” in their position or we should be seeing more buying activities.

Investors would also be interested in the upcoming earnings release of Barrick Gold on 02 Nov before market open.

Market is expecting Barrick Gold to post earnings of $0.23 per share. This would mean a year-over-year growth of 76.92%.

Consensus estimate expect the revenue to be $3 billion, indicating a 18.67% increase compared to the same quarter of the previous year. With these news, I think I would be watching GOLD closely for a nice upside.

Summary

Based on what I have shared, both AU and GOLD have been trading above the 50-day MA period and both ADX is showing potential developing bullish upside.

What set them apart might be the investors interest as seen in RSI, GOLD might be of greater interest to investors as better-than-expected revenue and earnings per share is being looked at.

I will be monitoring the price action of these 2 stocks over the week and see if there is any potential to catch a good price.

Appreciate if you could share your thoughts in the comment section whether you think GOLD would have a better performance than AU considering a much better expectation for its earnings?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.