Coeur Mining (CDE) Surges 10.23% Intraday: What's Fueling the Gold Sector Rally?

Summary
• Coeur Mining (CDE) rockets 10.23% to $17.605, breaching its 52-week high of $23.615
• Gold prices surge 1.22% to $4,277/oz post-Fed rate cut, amplifying mining equity demand
• Sector peers like New Gold (NGD) and Newmont (NEM) rally, signaling broader gold sector momentum

Coeur Mining’s explosive 10.23% intraday surge on December 11, 2025, has ignited a frenzy in the gold sector. The stock’s meteoric rise—from $16.02 to $18.0358—coincides with a 1.22% jump in gold prices and acquisition speculation involving New Gold (NGD). With the Fed’s dovish pivot and central bank buying driving bullion demand, investors are scrambling to decode whether this momentum is a short-term spike or a new bull market catalyst.

Gold Price Surge and Acquisition Hints Fuel CDE’s Volatility
Coeur Mining’s 10.23% intraday surge is driven by a confluence of factors: a rumored acquisition of New Gold (NGD), which surged 9.26% on the same day, and a 1.22% rally in gold prices to $4,277/oz. The Fed’s 25-basis-point rate cut and dovish guidance have reduced the cost of holding non-yielding assets like gold, boosting mining equities. Additionally, Coeur’s technicals—RSI at 58.98, MACD divergence, and a 52-week high—validate the move. Analysts at TD Securities upgraded NGD to ‘Buy’ with a $12 price target, citing synergies from the acquisition. This strategic consolidation, coupled with gold’s safe-haven appeal, has created a self-reinforcing bullish loop.

Gold Sector Rally Gains Momentum as CDE Acquisition Drives NGD’s Surge
The gold sector is experiencing a coordinated rally, with Coeur Mining (CDE) and New Gold (NGD) leading the charge. CDE’s 10.23% gain is the most dramatic, but peers like Hecla Mining (HL) and Agnico Eagle (AEM) have also posted double-digit gains this week. The sector’s strength is underpinned by the Fed’s dovish pivot, which has pushed gold to record highs and reduced the discount rate on mining stocks. New Gold’s 9.26% jump, driven by acquisition speculation, highlights how M&A activity can catalyze sector-wide momentum. Coeur’s strategic move to acquire New Gold is not just a stock-specific event but a signal of broader consolidation in the gold space.

Options Playbook: Leveraging CDE’s Bullish Breakout with High-Leverage Calls
• 200-day average: $15.1655 (below current price)
• RSI: 58.98 (bullish momentum)
• MACD: -0.1055 (negative but signal line at -0.2517 suggests divergence)
• Bollinger Bands: Upper at $17.38, Middle at $15.47, Lower at $13.55 (price near upper band)

Coeur Mining’s technicals suggest a continuation of its bullish trend, with key resistance at $17.38 and support at $15.47. The RSI’s 59 reading indicates strong momentum, while the MACD’s negative value hints at potential exhaustion in the near term. Traders should monitor the 200-day average ($15.1655) as a critical support level. For options, two contracts stand out:

• CDE20251219C17.5 (Call, $17.5 strike, 12/19 expiry):
- IV: 75.97% (high volatility)
- Leverage ratio: 19.57% (high)
- Delta: 0.548 (moderate sensitivity)
- Theta: -0.086379 (rapid time decay)
- Gamma: 0.188527 (high sensitivity to price changes)
- Turnover: 158,216 (liquid)
- Payoff at 5% upside: $0.88 (max(0, 18.53 - 17.5))
- This call offers aggressive leverage for a 5% price move, ideal for short-term traders betting on a breakout above $17.50.

• CDE20251219C18.5 (Call, $18.5 strike, 12/19 expiry):
- IV: 74.82% (high)
- Leverage ratio: 36.69% (very high)
- Delta: 0.362 (moderate sensitivity)
- Theta: -0.070171 (moderate decay)
- Gamma: 0.181233 (high sensitivity to price changes)
- Turnover: 7,990 (liquid)
- Payoff at 5% upside: $0.88 (max(0, 18.53 - 18.5))
- This contract provides even higher leverage for a smaller price move, suitable for traders expecting a sharp rally to $18.50.

Action Insight: Aggressive bulls should prioritize CDE20251219C17.5 for a breakout play, while CDE20251219C18.5 offers high-reward potential if Coeur clears $18.50. Both contracts benefit from high gamma and liquidity, making them ideal for short-term directional bets.

Backtest Coeur Mining Stock Performance
The backtest of CDE's performance after a 10% intraday surge from 2022 to now shows favorable results. The 3-Day win rate is 53.28%, the 10-Day win rate is 55.53%, and the 30-Day win rate is 56.76%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 12.02%, which occurred on day 59, suggesting that there is potential for significant gains following the 10% intraday surge.

Bullish Momentum Unlikely to Subside – Position for CDE’s Next Move
Coeur Mining’s 10.23% surge is a clear signal of renewed investor confidence, driven by the acquisition of New Gold and a broader commodities rally. Technical indicators like the RSI and Bollinger Bands suggest the stock is poised to test its 52-week high of $23.62, though a pullback to $15.47 could test near-term resolve. The options market is pricing in significant volatility, with high-leverage calls like CDE20251219C17.5 and CDE20251219C18.5 offering asymmetric upside. Meanwhile, sector leader Newmont (NEM) has gained 5.48%, reinforcing the gold sector’s strength. Watch for a breakout above $17.38 or a breakdown below $15.47 to confirm the next directional move. Aggressive bulls may consider CDE20251219C17.5 into a bounce above $17.50.