Why the Saracen Mineral Holdings Ltd Share Price Rose Strongly Today

What happened to the Saracen Mineral Holdings share price?

Shares of Saracen Mineral Holdings Ltd [ASX:SAR] gained more than 5% today. It’s trading at $1.25 at the time of writing. It’s now up 55% for the year.

Why did the price of SAR shares rise?

Saracen is a gold miner and explorer. It has a joint venture and farm-in agreement (through a subsidiary) with fellow gold company Nexus Minerals Ltd [ASX:NXM]. Nexus released some positive news on drilling results today.

What now for Saracen Mineral Holdings Ltd?

All eyes will be on the gold price when it comes to Saracen. Gold has shown recent strength. Should that continue, we can expect Saracen to continue trending higher. However, Saracen brings with it additional mining and business risks other than the gold price alone. Certainly, it’s an interesting stock to watch if you’re interested in having some exposure to gold.  Conversely, any down move in the gold price could cause Saracen to fall.

Regards,

Callum Newman

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Callum Newman

Callum Newman

Callum Newman is the editor of Markets and Money and Associate Editor of Cycles, Trends and Forecasts. He also hosts Markets and Money Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to Markets and Money here.

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