Playstocks Mid Day Market Report, Economic Data and Gold Stock Top Gainers

US Economy Continues to Fall and Gold Rises

Economic numbers continue to point to a faltering US economy, but I am sure the jobs report Friday will show a decent manipulated number.

US markets close early today, so this mid day report is early. Economic activity in the services sector contracted in June for the second time in the last three months, say the nation's purchasing and supply executives in today's Services ISM^® Report On Business^®. The Services PMI^® registered 48.8 percent, indicating sector contraction for the third time in 49 months.

In June, the Services PMI^® registered 48.8 percent, 5 percentage points lower than May’s figure of 53.8 percent. The reading in June was a reversal compared to May and the second in contraction territory in the last three months

The US trade gap grew slightly less than expected in May, but to the widest level since late 2022, government data showed today, as exports and imports both slipped.The overall deficit grew to $75.1 billion, from a revised $74.5 billion in April, said the Commerce Department.

Reported today, recurring applications for US jobless benefits rose for a ninth straight week in the longest stretch since 2018, indicating a growing number of people are having difficulty finding a new job. Continuing claims, a proxy for the number of people receiving benefits, increased to 1.86 million in the week ended June 22, the highest since November 2021.

Gold is up about $38 as of this writing and many of our gold stocks are up strong. Perhaps gold is picking up on the weak US economic data. As I have been commenting, I expect gold to be range bound for a while as the Central Banks try to accumulate more gold in this higher price range. They are hoping the higher prices will convince weaker hands to sell their gold. Once they drain out that gold, prices will go higher.

So far gold remains in a stealth rally, still little buying on Comex futures, in fact open interest has been declining in June. Net long positions have been flat. Here are 5 of the top performing gold stocks today. To be clear, DRDGold is not on our Selection List, the other 4 are.

New Gold Inc. (NGD) +6.85%

New Gold is a dynamic intermediate gold mining company with a diversified portfolio of assets in Canada and Mexico. The company’s strategic focus on operational excellence and cost management has led to robust production growth and improved financial performance. New Gold's flagship assets, the Rainy River and New Afton mines, are key drivers of its growth, with significant exploration potential and long mine lives. Both mines are expected to shown strong production growth in 2024 and 2025. Additionally, New Gold’s commitment to sustainable mining practices and community engagement enhances its reputation and reduces operational risks. With gold prices expected to remain strong amid economic uncertainties, New Gold is well-positioned to deliver substantial shareholder value.

DRDGOLD Limited (DRD) +5.12%

DRDGOLD Limited is a leading South African gold producer specializing in the recovery of metal from surface tailings. The company's innovative approach to reprocessing tailings and its extensive infrastructure in the Witwatersrand Basin provide it with a unique competitive advantage. DRDGOLD’s consistent production growth, coupled with its commitment to environmental stewardship, positions it as a leader in sustainable mining. The company’s robust balance sheet and strong cash flow generation support its growth initiatives and dividend policy, making it an attractive investment. As gold remains a safe-haven asset, DRDGOLD’s low-cost production and strategic focus on sustainability offer significant upside potential.

Kinross Gold Corporation (KGC) +3.12%

Kinross Gold is a top-tier gold mining company with operations spanning the Americas, West Africa, and Russia. Kinross’s diversified portfolio of high-quality mines, coupled with its strong pipeline of development projects, underpins its growth strategy. The company’s disciplined approach to capital allocation and operational efficiency has resulted in strong free cash flow generation and a solid balance sheet. Kinross’s commitment to responsible mining practices and community engagement further enhances its investment appeal. With a favourable gold price environment and ongoing operational improvements, Kinross is well-positioned to deliver robust returns and long-term value for shareholders.

B2Gold Corp. (BTG) +2.96%

B2Gold is a rapidly growing gold producer with a strong presence in Africa, Asia, and South America. The company’s low-cost production profile and diversified asset base provide resilience and significant growth potential. B2Gold’s flagship Fekola Mine in Mali continues to outperform, driving production growth and strong cash flow generation. The company’s robust exploration pipeline and strategic acquisitions further enhance its growth prospects. Their new Goose mine in the Artic is slated to start production in 2025. B2Gold’s commitment to social responsibility and sustainable mining practices strengthens its reputation and operational stability. As global gold demand remains robust, B2Gold’s strategic focus on low-cost, high-return projects positions it for substantial growth and shareholder value creation.

Alamos Gold Inc. (AGI) +3.08%

Alamos Gold is a leading intermediate gold producer with diversified operations in North America. The company’s high-quality asset base, including the Young-Davidson and Island Gold mines, drives strong production and cash flow growth. Alamos’s focus on operational excellence and cost control has resulted in consistent performance and robust margins. The company’s extensive exploration program and strategic acquisitions underpin its growth strategy, providing significant upside potential. Alamos’s commitment to environmental sustainability and community engagement enhances its operational resilience and long-term value. With favorable gold market dynamics and ongoing operational improvements, Alamos Gold is well-positioned to deliver strong returns and sustainable growth.

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