American Bonanza Gold Corp. (TSE:BZA) (PINK:ABGFF) hit a new multiyear stock price high as tense situation across the markets favorited the stock which already was on the brink of a breakout.
BZA added 20.75% to its stock price on Friday under a trading volume of 6.73 million, more than 12 times heavier than 90 day average of 540 thousand. With this much buying pressure Bonanza made it among the most actively traded stocks on the Toronto Stock Exchange.
American Bonanza share price hit a new 52-week high of 64 cents and under the heaviest trading volume recorded throughout the year.
There was no news directly associated with the spike though. U.S. and Canadian markets fell on Friday and traders simply turned to gold stock for shelter forcing the prices up significantly. Technically it turned out very good for BZA and created a precedent for further gains. Fundamentally the situation is not so sound.
U.S. posted unsatisfactory unemployment data on Friday which caused panic across the markets, but the Labor Department latter said the 9.1% unemployment rate recorded in August was unchanged from earlier month and in-line with calculations of economist, thus it’s very likely gold stock will enjoy only a short burst of buying pressure.
