Here's Why New Gold Jumped as Much as 13% Today
Shares of New Gold (NYSEMKT: NGD) rose as much as 13% today in the latest move during the ongoing coronavirus pandemic. The stock market has recovered surprisingly quickly from its mid-March plunge, but a backdrop of sour economic data has kept investors nervous. Today, energy markets gave investors reason for pause.
Traders rushed to fill expiring futures contracts for West Texas Intermediate (WTI), the primary crude oil benchmark for American petroleum, causing a more than 85% crash in prices. A barrel of WTI crude oil could be purchased on the spot market for less than $1 at one point today.
That helped to keep gold prices above $1,700 per ounce, which propelled shares of New Gold and its peers higher. As of 2:10 p.m. EDT, the gold stock had settled to a 10.1% gain.
Source Fool.com
