Coeur Mining Surges 12% on Acquisition Hype and Gold Rally – Is This the Start of a Bull Run?

Summary
• Coeur Mining (CDE) rockets 12.05% to $17.895, hitting an intraday high of $17.915
• Rumored acquisition of New Gold (NGD) and gold price surge to $4,279/oz drive momentum
• Options chain shows high volatility, with CDE20251219C17.5 and CDE20251219C18.5 as top picks

Coeur Mining’s explosive 12.05% rally on December 11, 2025, has sent shockwaves through the gold sector. The stock’s surge, fueled by acquisition speculation and a broader commodities boom, has traders scrambling to decipher whether this is a short-term spike or the start of a sustained bull run. With gold prices hitting $4,279/oz and New Gold (NGD) up 9.26%, the sector’s momentum is undeniable. CDE’s technicals and options activity suggest a high-stakes game of breakout or breakdown is unfolding.

Acquisition Hype and Gold Rally Ignite CDE’s 12.05% Surge
Coeur Mining’s 12.05% intraday surge is directly tied to a rumored acquisition of New Gold (NGD), which has already driven the latter’s stock up 9.26%. The deal, if finalized, would consolidate Coeur’s position in North American gold and silver mining, unlocking synergies in exploration and production. Analysts at TD Securities upgraded NGD to ‘Buy’ with a $12 price target, citing the acquisition’s potential to enhance operational efficiency and market share. Additionally, gold prices hitting $4,279/oz—a 1.22% daily gain—have amplified demand for mining equities, as lower interest rates reduce the cost of holding non-yielding assets like gold. Coeur’s technicals, including a 52-week high and a bullish RSI of 59, further validate the move.

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. While CDE’s 12.05% gain is the most dramatic, 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 Federal Reserve’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 the 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 following a 12% intraday surge from 2022 to the present indicates favorable short-to-medium-term gains, with the 3-Day, 10-Day, and 30-Day win rates all above 50%. However, the maximum return during the backtest period was only 11.88%, which suggests that while CDE has a tendency to move upwards in the immediate aftermath of a significant intraday increase, its overall performance over the longer term may be more modest.

Bullish Momentum Unlikely to Subside – Position for CDE’s Next Move
Coeur Mining’s 12.05% 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 5.64%, 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. If NEM continues its rally, CDE’s momentum could gain further traction.