Why Hycroft Mining Was a Tarnished Stock Last Month
Yahoo Finance ·
The trajectory of precious metals prices in June was hardly helping the stocks of companies that specialize in mining such minerals. Exhibit A: Hycroft Mining ( HYMC 0.55% ) , a silver and gold specialist that possesses but a single mine in its home state of Nevada -- although it's quite a large-scale play. With one mine, Hycroft is a classic stock in its sector, a non-diversified company that is always susceptible to spot price movements. That worked beautifully in its favor earlier this year, when a long bull run in precious metals reached record highs for both gold and silver . Yet subsequent developments would send both Earthward at fairly jarring rates. The prices for the two precious metals plummeted at double-digit rates across June. Those fairly consistent falls kept draining investor enthusiasm for Hycroft's stock, and justifiably so. What made the pretty metals so tarnished in June? Mostly, this had to do with intensifying speculation that the Federal Reserve (Fed) would raise interest rates, perhaps more than once, this year. Inflation continues to be a problem, with the latest consumer price index (CPI) reading showing a jump in May.
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