Hycroft Mining Holding Corporation (NASDAQ:HYMC) shares are trading higher Tuesday morning as gold futures jumped almost 6%, reclaiming the $4,900 level after last week's brutal sell-off. Here’s what investors need to know.
Gold's Snapback Fuels Buying In Precious-Metals Stocks
The rebound puts bullion on track for its strongest single-day gain since the financial crisis and claws back part of a two-day, 13.5% plunge.
Support for gold came after Fed governor Stephen Miran said policy is too restrictive and still expects over a full percentage point of rate cuts this year.
Lower real rates usually pressure the dollar and boost non-yielding assets like gold, pulling money back into bullion and gold-linked equities.
Why HYMC Trades Like A Leveraged Bet On Gold
Hycroft Mining is a gold and silver developer that owns 100% of the Hycroft Mine in northern Nevada, a large precious-metals deposit with significant gold and silver resources. Because the company is still advancing the project toward full-scale production, HYMC trades largely on the value of its in-ground ounces rather than current cash flow.
When gold spikes, the implied value of that inventory rises, improving projected economics and making it easier to fund the project, a key reason traders bid HYMC higher whenever bullion rallies.
Can Hycroft Maintain Momentum Amid Mixed Signals?
Hycroft Mining is currently trading 4.54% above its 20-day simple moving average (SMA) and 138.3% above its 100-day SMA, demonstrating strong short-term momentum. Over the past 12 months, shares have increased an impressive 1,477.92%, and are currently positioned closer to their 52-week highs than lows.
The RSI is at 49.80, indicating a neutral position, while the MACD is below its signal line, suggesting bearish pressure on the stock. The combination of neutral RSI and bearish MACD indicates mixed momentum, which could signal caution for traders.
- Key Resistance: $58.73
- Key Support: $45.00
HYMC’s Business Model
Hycroft Mining is a gold and silver producer. Its operating mine, the Hycroft Mine, is an open-pit heap leach operation located approximately fifty-four miles west of Winnemucca, Nevada.
The company matters significantly in the current market context as it controls one of the world's larger gold-silver deposits, which positions it well to capitalize on rising gold and silver prices driven by increased demand and geopolitical uncertainties.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Hycroft Mining Holding, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Strong (Score: 99.95) — Stock is outperforming the broader market.
The Verdict: Hycroft Mining Holding’s Benzinga Edge signal reveals a strong momentum setup. While the stock shows exceptional strength, traders should remain vigilant for potential corrections given the overbought conditions.
HYMC Shares Surge Tuesday Morning
HYMC Price Action: Hycroft Mining Holding shares were up 7.02% at $37.68 at the time of publication on Tuesday, according to Benzinga Pro data.
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