Here’s Why Kinross Gold Corporation (KGC) Skyrocketed Today

We recently compiled a list of the 10 Firms, Predominantly Gold Miners, Lead Wednesday Rally. In this article, we are going to take a look at where Kinross Gold Corporation (NYSE:KGC) stands against the other stocks.

Ten companies–predominantly gold miners–led Wednesday’s rally on Wall Street, despite the latter’s main indices closing mixed.

The Dow Jones eked out a 0.25 percent gain, while the S&P’s main index inched up 0.16 percent. Nasdaq bucked counterparts, dipping by 0.06 percent.

We considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume to come up with Wednesday’s top advancers.

Aerial shot of a mine entrance, the bedrock of the company’s gold and silver extraction.

Kinross Gold Corporation (NYSE:KGC)

Share prices of Kinross Gold Corporation (NYSE:KGC), a Canadian gold and silver mining company, rose for a second day on Wednesday, rallying by 4.85 percent to end at $10.38 apiece as investors took path from gold prices nearing a four-week high.

On Wednesday, spot gold rose by 0.3 percent to $2,657.38 per ounce, as of 02:15 p.m. ET, hitting its highest since December 13. Meanwhile, US gold futures settled 0.3 percent higher at $2,672.40.

Similar to its peers, investor sentiment for Kinross was buoyed by incoming president Donald Trump’s criticism of the Federal Reserve over interest rates being “far too high,” which could spark lower rates under his administration.

With interest rates likely to be lower, the returns from bonds and other interest-yielding assets would look less appealing and may force investors to shift their funds into non-interest assets such as gold.

Overall KGC ranks 7th on our list of the firms that led Wednesday rally. While we acknowledge the potential of KGC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.