Why Golden Star Resources Stock Jumped 13% on July 29
The shares of precious-metals miner Golden Star Resources (NYSEMKT: GSS) rallied 13% by roughly 3 p.m. EDT on July 29. The advance was slow and steady through the day. However, it would be hard to discuss this move without looking back over the last couple of months. The stock is up an incredible 70% or so over the trailing three month span. There are two intertwined stories here.
Gold, the primary metal that Golden Star produces, has advanced sharply since hitting a low in mid-March. The rise has accelerated in recent days. That has led investors to bid up the shares of miners, which are generally leveraged to price increases in gold. The expectation is that rising gold prices will lead to rising earnings.
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Source Fool.com
