Hecla Mining (HL) stock soared 5.29% in pre-market trading on Monday, riding the wave of a broader rally in gold stocks. This surge comes as spot gold prices extended their gains, climbing nearly 2% to reach $3,305 per ounce, driven by a weaker dollar.
The precious metals sector received an additional boost from Goldman Sachs' bullish outlook on gold. The investment bank reiterated its "structural bullish gold view," projecting gold prices to hit $3,700 per ounce by year-end and $4,000 by mid-2026. In more extreme scenarios, Goldman Sachs even suggested that gold could potentially trade near $4,500 per ounce by the end of 2025, citing potential risks related to Federal Reserve policies and changes in U.S. reserve strategy.
Hecla Mining's pre-market rally aligns with the broader trend observed in the gold mining sector. Other major players in the industry also experienced significant gains, with Gold Fields and Harmony Gold both up 5%, while Coeur Mining and Kinross saw 3% increases, and industry giant Barrick Gold rose by 2%. As one of North America's largest silver producers and a growing gold producer, Hecla Mining stands to benefit significantly from the positive sentiment surrounding precious metals.
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