NEW YORK (Reuters) - Gold company stocks rose on Wednesday as the price of the precious metal hit an eight-week high on a slide in the dollar and a jump in oil prices.
Brian Hicks, co-manager of U.S. Global Investors Inc's global resources fund, said with costs coming down for miners, and the gold price rising, the stage was set for gold company stocks to rise.
"I think we are in for a period of stronger margins for gold stocks," he said. "You will see a re-rating of key names, like Newmont and Barrick, as we get more buying from generalists who have not participated in the gold market."
In morning trading on the New York Stock Exchange, shares of Newmont Mining Corp (NEM.N) were up 4.7 percent at $45.65 and Freeport-McMoran Copper & Gold (FCX.N) was 4.1 percent higher at $51.55.