The spot price of gold and silver continued to move up in late July as investors anxiously await the conclusion of the U.S. Federal Reserve meeting that will stretch into tomorrow.
Analysts and oddsmakers are betting on a rate cut that will carry us into August. Gold and silver stocks have thrived ahead of this meeting, but are the gains priced in? Let’s look at two of the best performers right now.
Fortuna Silver (TSX:FVI)(NYSE:FSM) is a Vancouver-based silver miner with its main operations in Peru and Mexico. The company is set to release its second quarter 2019 results on August 7.
Shares of Fortuna have climbed 26% over the past three months at the time of this writing. Gold has performed well in 2019 but silver has not even surpassed its two-year highs. A rate cut could be the second wind it needs.
New Gold (TSX:NGD)(NYSE:NGD) is a Toronto-based multinational gold mining company. Shares have shot up 64% over the past three months. New Gold is set to release its second quarter 2019 results on August 1.
The spot price of gold has surged to a five-year high on the back of this dovish monetary turn. Its gains may be largely priced-in, but a Fed rate cut will provide a solid price floor going forward.
I’m bullish on both of these stocks as we look ahead to August, but Fortuna Silver looks like it has the higher upside today.
