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3 Gold Shares Rising Strongly

By Roland Head - Updated Apr 7, 2017 at 11:49AM

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Gold Fields, Centamin, and Harmony Gold Mining are all on the move this week.

LONDON -- After falling on Friday, gold has regained some lost ground this week. However, there has been little change overall, with gold on the December contract rising by just 0.6% to $1,717 over the last five trading days.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The performance of the $63 billion SPDR Gold Trust ETF (NYSE: GLD) has inched ahead over the last five trading days, gaining 0.2% to $166.43. The London-listed Gold Bullion ETF (LSE: GBS.L) has performed in a similar fashion, gaining just 0.1% to $165.92 over the last five days. Both funds are up around 9% so far this year.

Gold's big movers
Many investors prefer to invest in gold-mining stocks, rather than gold itself, as investing in miners offers the potential for leveraged gains on the price of gold. Let's take a look at some of this week's biggest movers.

Investors betting that Centamin (LSE: CEY.L) will recover from its recent share price collapse are doing well so far. The shares have gained another 9% to 73 pence this week, after the company said that the recent court judgment against it did not invalidate the mining concession agreement for its Sukari mine in Egypt, and merely required some missing paperwork to be provided to the court. Centamin's shares remain 24% down on the month.

Harmony Gold Mining (NYSE: HMY) has risen 10% over the last month to $8.71. Harmony is the third-largest gold producer in Africa and its share price has been given a big boost by its latest quarterly results, which were published yesterday. First-quarter net income rose by almost 400% and gold output reached the highest level in 10 quarters, with 321,924 ounces of the yellow metal produced over the last three months. CEO Graham Briggs believes the company is on course to increase production to 1.7 million ounces per year in 2016 from 1.3 million ounces in the current financial year.

Fellow South African gold miner Gold Fields (NYSE: GFI) is also up, rising 7.1% to $13.02 over the last month as the disruption caused by the recent strikes in South Africa abates and production returns to normal. On Tuesday, workers at the KDC East Mine returned to work and all three of Gold Fields' operating mines in South Africa are now back in production.

Identifying growth shares
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Stocks Mentioned

Gold Fields Limited Stock Quote
Gold Fields Limited
GFI
$10.38 (-4.42%) $0.48
Harmony Gold Mining Company Limited Stock Quote
Harmony Gold Mining Company Limited
HMY
$3.99 (-2.44%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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