Gold prices and gold stocks jumped on Friday as investors returned to the precious metal for the same reasons stocks fell on fears of new tariffs. Several gold miners flashed buy signals.

Gold rose 1.4% to $3,340.80 an ounce, according to FactSet. It is up nearly 5% from a low of $3,187.20 on May 16 but is still about 2.5% below a high of $3,422.80 on May 6.

Gold has pulled back from record highs this month as the tariff war eased. But investors have started turning to bullion as Treasury yields rose this week. On Friday, President Donald Trump's new tariff threats added to demand for gold.

Trump threatened a 50% tariff on European Union imports starting June 1, saying negotiations have not made enough progress. Treasury Secretary Scott Bessent also voiced frustration with the EU's proposal. Also, Trump has threatened 25% tariffs on Apple iPhones unless they are made in the U.S. Apple plans to move some iPhone work from China to India.

GOLD PRICES SEND ETFS HIGHER

The VanEck Gold Miners ETF rose more than 2% to 50.25 and broke through a trendline entry around 49.75. That said, the ETF broke through a lower trendline entry around 40 on Wednesday.

The IBD gold and silver mining industry group rose 1.9% in morning trade, the second-best performing industry group after nuclear-fueled alternative energy.

Gold stocks, including many that had given sell signals more than a week ago, are bouncing back. Oddly, their gains Friday came in light volume, suggesting institutions aren't pouring into these stocks all at once.

Newmont rose 1.8% to 53.63 as it formed a large cup-with-handle base. The buy point is 57.16, but a trendline drawn through the handle's high suggests a possible entry around 52.50.

South Africa-based Harmony Gold Mining rose more than 4% and found support at its 50-day moving average, IBD MarketSurge charts show. That's a buy area for the stock, though light volume undermined the entry.

Canada-based Kinross Gold, which also has mines in the U.S., Brazil, Mauritania and Chile, rose 1.9%. Notably, the stock found strong support at its 50-day line, and has barely broken below it since breaking out of a base on Jan. 28.

AngloGold Ashanti, another South African gold producer, has also held above its 50-day line since the start of its rally in January. AU rose more than 3% on Friday.

AngloGold, Kinross and Harmony all have perfect 99 Composite Ratings. Canada's Agnico-Eagle Mines rose 2.6% to 117.55 and is up more than 10% this week as it bounced back above its 50-day line. The stock broke through a trendline around 113 on Wednesday.

Barrick Mining rose 1.8% Friday morning. The stock re-emerged above its 200-day moving average on Tuesday but tested resistance at its 50-day line. The stock has fallen as much as 12% below a 19.89 buy point from a handle breakout on April 11.

ROYALTY PLAY ALSO FOLLOWS GOLD PRICES

Wheaton Precious Metals, which doesn't own mines but holds agreements for gold and other minerals, rose 2.4% Friday. The stock is near alternate buy points of 86.55 and 87.42 and is on track for a record close. Franco-Nevada fell as much as 2% below its 50-day average earlier this month but is now 3.6% above it, having risen 2.4% on Friday.

It appears to be forming a flat base, while indicating a trendline entry. Triple Flag Precious Metals found support around its 50-day line. Both are Canadian-based royalty companies.

Eldorado Gold rose 1.2% to 19.68. The Canadian miner, which also operates in Turkey and Greece, is consolidating between 17 and 20.65.

Gold Fields and South Africa's DRDgold regained their 50-day moving averages. Alamos Gold remains below its 50-day line.

These gold stocks have a 21-day average true range (ATR) of less than 6%. Average true range is a metric available on IBD's MarketSurge that measures the breadth of a stock's behavior. Stocks with high ATRs tend to make big price moves that can trigger sell-offs. Stocks with low ATRs tend to make more gradual moves.

With the S&P 500 and Nasdaq now trending strongly, investors can buy stocks with ATRs of up to 8%, although they should be careful not to get too concentrated in high-energy stocks. (alg)

Source: Dow Jones Newswires