Shares of Kinross Gold Corporation (TSX:K)(NYSE:KGC) increased 3.6% as of the noon hour on September 7. Gold and silver prices were up 1% and 1.3% respectively as both metals continued to impress since late July. While safe havens continue to attract investors due to the crisis on the Korean Peninsula and Hurricane Irma, this time it was a suggestion from President Trump that made precious metals surge.
As debate rages between the Republicans and Democrats over the time constraints on raising the debt ceiling, President Trump shocked his own party by reportedly coming to a deal with the rival Democrats. Reports say that Trump suggested scrapping future debt ceiling votes altogether. This cannot be accomplished by the next vote, but Democrat Senate leader Chuck Schumer reportedly said that it may become a topic of discussion in the future.
In any case, the news dropped the U.S. dollar to 32-month lows, which propped up the price of gold and silver.
Kinross Gold has seen 41% growth in 2017 even as gold prices have suffered from volatility for much of the year. On August 2 the company announced its second quarter results. It reported adjusted net earnings of $54.9 million compared with a net loss of $9.8 million in Q2 2016. Kinross managed to reduce production costs in an unfriendly price environment, and as the gold price breaches above the $1350 mark Kinross is in a fantastic position to see its stock reach above its 2017 high.
