Coeur Mining Surges 5.42%: What's Fueling This Gold Sector Powerhouse's Rally?

Summary
• Coeur Mining (CDE) rockets 5.42% to $18.05, hitting a 2025 high of $18.23
• February 2026 options debut with $17.50 strike call contracts attracting attention
• Gold sector surges as inflation data and geopolitical tensions drive safe-haven demand

Coeur Mining’s explosive 5.42% intraday rally has outpaced the broader gold sector, which itself is riding a wave of momentum from softer U.S. inflation and geopolitical tensions. With gold prices near record highs and a breakthrough in scandium recovery at the Hat Project, CDE’s move reflects both sector tailwinds and speculative fervor. The stock’s 18.23 intraday high suggests a potential breakout from its 52-week range, while options activity hints at strategic positioning for 2026.

Gold Sector Tailwinds and Scandium Breakthrough Ignite CDE
Coeur Mining’s 5.42% surge is driven by a confluence of macroeconomic and technical factors. Softer-than-expected U.S. inflation (2.7% in November) has intensified bets on Federal Reserve rate cuts, pushing gold to $4,320/oz and lifting gold miners. Simultaneously, a metallurgical breakthrough at the Hat Project—recovering 82% scandium from copper flotation tailings—has repositioned CDE as a potential beneficiary of U.S. critical minerals policy. While the company’s core gold operations align with sector strength, the scandium byproduct adds speculative upside, particularly as global demand for the metal is projected to exceed 500 tonnes by 2028.

Gold Sector Soars as CDE Outpaces Peers
The gold sector, led by the GOLD ETF (up 1.64%), is surging on inflation-driven rate-cut expectations and geopolitical safe-haven demand. Coeur Mining’s 5.42% gain far outpaces the sector average, reflecting its dual exposure to gold and emerging scandium markets. While peers like Hecla Mining (HL) and Freeport-McMoRan (FCX) are also benefiting from gold’s rally, CDE’s metallurgical innovation and North American footprint position it as a speculative play on both precious metals and critical minerals.

Bullish Options and ETFs for a Gold Sector Breakout
• MACD: 0.262 (bullish), Signal Line: 0.077, Histogram: 0.185 (positive divergence)
• RSI: 48.59 (neutral), Bollinger Bands: 18.29 (upper), 16.15 (middle), 14.01 (lower)
• 200D MA: 11.54 (well below current price), 30D MA: 15.71 (support)

Coeur Mining’s technicals suggest a continuation of its bullish momentum. The stock is trading above its 200-day average and approaching the upper Bollinger Band, with MACD divergence indicating potential for a breakout. Two options stand out for aggressive positioning:

• CDE20251226C18 (Call, $18 strike, 2025-12-26):
- IV: 57.11% (moderate), Leverage Ratio: 22.65%, Delta: 0.609 (moderate sensitivity), Theta: -0.0906 (high time decay), Gamma: 0.2475 (high sensitivity to price changes), Turnover: 2,415
- This call offers a 22.65% leverage ratio and high gamma, ideal for capitalizing on a short-term breakout. A 5% upside to $19.00 would yield a payoff of $1.00/share.

• CDE20251226C18.5 (Call, $18.50 strike, 2025-12-26):
- IV: 63.19% (moderate), Leverage Ratio: 29.59%, Delta: 0.4866 (moderate sensitivity), Theta: -0.0855 (high time decay), Gamma: 0.2323 (high sensitivity), Turnover: 1,944
- With a 29.59% leverage ratio and strong gamma, this contract is well-suited for a continuation of the current rally. A 5% upside would generate a $0.50/share payoff.

Action Insight: Aggressive bulls should consider CDE20251226C18 into a test of the $18.23 intraday high. If the stock breaks above $18.50, CDE20251226C18.5 offers amplified exposure to a potential 52-week high challenge.

Backtest Coeur Mining Stock Performance
The backtest of CDE's performance following a 5% 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 exceeding 50%. The maximum return observed was 12.11% over 30 days, suggesting that while there is volatility, CDE can offer significant gains within a month after such an intraday jump.

Coeur Mining at a Pivotal Crossroads: Act Now on Gold and Scandium Momentum
Coeur Mining’s 5.42% surge reflects a perfect storm of gold sector strength and speculative excitement over its scandium byproduct. With the stock approaching its 52-week high of $23.61 and options like CDE20251226C18 offering high leverage, the near-term outlook is bullish. Investors should monitor the $18.23 intraday high as a key resistance level and watch for confirmation of a breakout. The gold sector leader GOLD’s 1.64% gain underscores the broader trend, but CDE’s unique positioning in both precious and critical minerals makes it a compelling play. Act now: Target CDE20251226C18 if $18.23 is cleared, or consider a bull call spread to manage risk while capitalizing on the rally.