Why Gold Stocks Soared Today
Shares of gold mining stocks such as Iamgold Corp (NYSE: IAG), Gold Fields Ltd (NYSE: GFI), and Fortuna Mining Corp. (NYSE: FSM) rallied in a big way Monday, up 8.9%, 9.5%, 12.1%, respectively.
Gold prices were up 2.7% Monday after a weekend in which geopolitical tensions reignited. These include President Trump accusing China of violating its trade deal with the U.S., along with Ukraine launching a massive sneak attack on Russia's long-range bomber fleet.
Gold is often bought as a hedge against geopolitical calamity because it's perceived to be a store of value. So, when uncertainty between major global powers increases, so does the price of gold, usually. Of note, gold has been on the rise in the first few months of the Trump presidency.
Source Fool.com
