This is an Opportune time to buy Kinross Gold

Yes, gold has been on an upward trend since 2019.There have been minor troughs but it corrects and then the major trend continues upward.For example, in 2019 the price of gold was about $1500/ounce and moved upward gradually to the present price of $2500/ounce.Although there have been periods of time when the trend (although minor) was downwards.But if you draw a line through the data points  the   path of least variation(of all combined data points) from this line would be moving up and to the right.This is the major trend and this indicates that the future price of gold should  be higher than today.As a result   using this simple form of regression analysis  this blog sees the price of gold as rising.Using data from 2019 to 2024 the angle of the line from the origin (on a graph) can vary as much as from 30 to 50 degrees above horizontal.So although the future trend is fairly clear it is very difficult to predict exactly how high the price of gold can go in a short period of time.

          The gold industry is an important sector for Canada.The mining industry employed about 83,000 people in 2023 and gold was the biggest employer.And Canada exported $21 billion of gold to be it's third most valuable export.An increase in the price of gold will only make this sector and gold exports larger.This blog feels that 2024 is a good time for investment as well as an increase in capital expenditures and exploration within the industry.But within the gold sector of the Canadian stock market there are a number of solid stocks to choose from.One of them is Kinross Gold.

   Kinross Gold

   Kinross Gold (K) has traded as high as $11.75-$12.00 in 2019 and the price of gold was $1400-$1500 an ounce.Until this week K did not surpass $11.50.But the recent moves in the price of gold above $2500 an ounce has caused Kinross to shoot up to $12.56 .But it has fallen back and this blog sees this as an opportune time to buy.When the price of gold went up to $2000 from $1400 in 2019 Kinross hardly moved up in price.It had not captured the gains from the increase in the price of gold.And this year gold moved up from $2000 an ounce to it's present $2500 an ounce or a further 25% increase.Kinross is only this week getting back to it's 2019 price level while the price of gold has escalated by 25% since 2019.Kinross has uncaptured price gains.This compares to Agnico Eagle which has moved from $40 in 2014 to $109 today for a 175% gainer during the same period.

  Forecast for 2024

This blog  believes that the major trend of the price of gold will continue into the end of 2024.However there may be one or two minor trends  sideways or downward.The catalyst behind the major trend  will be purchases of gold by central banks for their reserves.For example, global gold reserves increased by 290 metric tons in the first quarter of 2024.Inflation will increase the monetary value of their reserves and they will be forced to anchor their reserves with purchases of gold,especially gold bullion.So this blog sees the price of gold at $2850-$2900 by December,2024.On the other hand Kinross Gold is still trading below it's former highs and can't seem to break through this resistance level.So this blog sees Kinross very slowly moving through this resistance level to $13 by November.
             https://www.zacks.com/  Dale Mcintyre is a freelance writer trained in economics that writes blogs for several broker including Zacks Research.