Interest rate cut hopes are driving gold stocks higher
Gold stocks are on the rise, with the yellow metal surging to a record high earlier today on the heels of February's personal consumption expenditures (PCE) price index, which was in line expectations and fueled hopes of interest rate cuts. In response, Barrick Gold Corp (NYSE:GOLD) and Royal Gold Inc (NASDAQ:RGLD) are on the rise today.
GOLD was last seen up 1.3% to trade at $16.85 -- its highest level since January. The security is on track for a third-straight gain, and has cleared a confluence of moving averages. The shares have added 18.4% in the last six months.
Call volume is today running at double the intraday average volume, with 43,000 bullish bets exchanged so far, compared to 8,175 puts. The most popular contract is the weekly 6/21 17-strike call.
RGLD is up 0.8% at $122.82 at last check, also heading for its third consecutive win and trading at its highest level since January. The stock toppled its 80-day moving average after spending most of 2024 underneath it, and is now swinging above its year-to-date breakeven.
At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RGLD's 50-day call/put volume ratio of 4.99 sits higher than 97% of readings from the past year, showing calls have been getting picked up at a much faster-than-usual rate.