New Gold (NGD) Touches 13-Year High on Gold's Jump

We recently published 10 Stocks With Crazy Gains. New Gold Inc. (NYSEAMERICAN:NGD) was one of the top performers on Monday.

New Gold Inc. (NYSEAMERICAN:NGD) rallied for a third straight session on Monday to hit a new 13-year high, as investors took heart from gold prices’ jump to a new all-time high as investors resorted to safer assets amid ongoing geopolitical tensions.

At intra-day trading, the stock climbed by 7.9 percent to as high as $10.79, a level it last touched in December 2012, before trimming gains to end the day just up by 5.40 percent at $10.54. The stock mimicked the rally in spot prices of gold which soared to an all-time high of $4,600 after Federal Reserve Chairman Jerome Powell revealed that he was being threatened by President Donald Trump of criminal indictment due to the central bank’s interest rates path, sparking investor concern over the agency’s independence.

It can be recalled that Trump has been criticizing Powell over the past few years due to disagreements over interest rates, arguing that the central bank should lower interest rates to boost economic growth.

Rates aside, investors also sought safety in gold as they digested the ongoing geopolitical tensions in Iran, which signaled readiness for war albeit remaining open to negotiations with the US.

Overall, spot gold’s rally spilled over to mining firms, including New Gold Inc. (NYSEAMERICAN:NGD), on expectations that the precious metal’s jump to all-time high would bolster profit margins moving forward.

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Disclosure: None. This article is originally published at Insider Monkey.