Here’s Why New Gold Inc. (NGD) 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 New Gold Inc. (NYSEAMERICAN:NGD) 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 view of an open mine with large cranes and excavators working on the surface.

New Gold Inc. (NYSEAMERICAN:NGD)

New Gold Inc. (NYSEAMERICAN:NGD), a Canadian mining company, saw its share prices grow for a second day on Wednesday, rising by 5.18 percent at $2.74 apiece as investor sentiment was buoyed by higher gold prices hitting a near four-week high.

According to analysts, investor sentiment was buoyed by incoming president Donald Trump’s criticism of the Federal Reserve, particularly because interest rates in the US were “far too high.”

Trump’s statement could spark lower interest 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.

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.

New Gold Inc. (NYSEAMERICAN:NGD) owns and operates the New Afton gold-silver-copper mine in British Columbia and the Rainy River gold-silver mine in Ontario, Canada.

Overall NGD ranks 8th on our list of the firms that led Wednesday rally. While we acknowledge the potential of NGD 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 NGD 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.