The spot price of gold was trading just above the US$1,810 mark as of mid-afternoon trading on June 14.
North American markets were hammered to kick off the week on Monday. That has spurred some
investors to take another look at the gold space. Today, I want to look at a gold stock that has sent off
buy signals in recent weeks.
Eldorado Gold (TSX:ELD)(NYSE:EGO) is a Vancouver-based company that is engaged in the mining,
exploration, development, and sale of mineral products in Canada and internationally. Shares of this
gold stock have dropped 19% in 2022 at the time of this writing. The stock is down 31% from the
previous year.
This company released its first quarter 2022 results on April 28. Eldorado reported total revenue of $194
million in Q1 2022 – down from $224 million in the previous year. The company posted a loss due to
severe weather issues in Turkey and Greece, as well as COVID-related labour issues. Fortunately, it
expects production to bounce back in a big way in the second half of fiscal 2022.
Shares of Eldorado are trading around its 52-week low at the time of this writing. The stock currently
possesses an RSI of 33, which puts the gold stock just outside of technically oversold territory. It is
trading in favourable value territory relative to its industry peers. I’m looking to snatch up this gold stock
on the dip as it is well-positioned for a rebound for the remainder of 2022.
