Another day, another tweet. President Donald Trump's latest salvo, aimed at Mexico this time, is sending the stock market down but boosting gold prices.To get more news about legends fx, you can visit wikifx.com official website.
When stocks sell off, nervous investors often take cover by rushing into gold. As such, gold stocks and related ETFs were scoring big gains Friday afternoon. Gold prices rose 1.4% to $1,310.30 an ounce.
Late Thursday, Trump set his sights on Mexico by declaring a new trade war. He tweeted: "On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP."
In a White House statement, he announced the tariff will increase to 10% on July 1, 20% on Sept. 1 and 25% on Oct. 1. Dow Jones, SP 500 and Nasdaq 100 futures fell 1% or more overnight, following his tweet.
Gold miners led the upside among the 197 industry groups tracked by IBD, with a nearly 4% gain. Of those stocks trading above 12 a share, AngloGold Ashanti (AU) surged 7% as it gapped up above its 50-day moving average for the first time since a brief poke above the line in early April. Shares may be starting the right side of a base with a potential 15.96 buy point.
IBD 50 stock Kirkland Lake Gold (KL) vaulted 6% in above-average trade. The stock is approaching a 35.30 buy point in a cup with handle. It's less than 3% from the entry. However, all purchases are highly risky with the market in correction.
Gold mining ETFs rallied. VanEck Vectors Gold Miners (GDX) gapped up and leapt 4% to reclaim its 50-day moving average, its first close above the line since April 10. The $8.9 billion fund is up 2% this year. Its top five holdings as of May 30 made up nearly 42% of assets, according to Morningstar Inc.
They were Newmont Goldcorp (NEM), Barrick Gold, Newcrest Mining, Franco-Nevada (FNV) and Agnico Eagle Mines. Franco-Nevada cleared the 77 buy point of a cup with handle Friday.
VanEck Vectors Junior Gold Miners (GDXJ) gapped up and surged nearly 4% to retake its 200-day line for the first time in over a month. The $3.7 billion fund is down 2% year to date. Its top five holdings — Kinross Gold (KGC), Evolution Mining, Northern Star Resources, Gold Fields (GFI) and Buenaventura Mining (BVN) — accounted for about 30% of assets.
Of the biggest gold ETFs, SPDR Gold Shares (GLD) ($30.3 billion) and iShares Gold Trust (IAU) ($11.7 billion) rose more than 1% each. Both popped above their 50-day lines and are up 2% this year.