Wheaton Precious Metals Surges 4.65% on Record Highs—What’s Fueling This Bullish Breakout?

Summary
• Wheaton Precious Metals (WPM) surges 4.65% intraday to $118.085, hitting its 52-week high of $118.95
• Analysts upgrade WPM to 'Outperform' as Hemlo Mine gold stream deal closes
• Silver’s 100% YTD rally and gold’s 57% gain drive sector momentum

Wheaton Precious Metals (WPM) is trading at its highest level since October 2025, with a 4.65% intraday surge to $118.085. The stock’s sharp move follows a $300 million gold stream agreement on the Hemlo Mine and a wave of analyst upgrades. With silver outperforming gold and institutional buying accelerating, WPM’s rally reflects broader sector tailwinds and speculative fervor.

Hemlo Gold Stream Deal and Analyst Upgrades Drive WPM’s Record High
WPM’s record-breaking move stems from two catalysts: the completion of its $300 million gold stream agreement on the Hemlo Mine and a flurry of analyst upgrades. The Hemlo deal, part of a $1.092 billion financing package, secures WPM’s long-term reserve growth and validates its streaming model. Simultaneously, RBC Capital upgraded WPM to 'Outperform' with a $130 price target, while Weiss Ratings and Raymond James echoed bullish sentiment. These developments, combined with silver’s industrial demand surge and gold’s safe-haven appeal, have ignited investor enthusiasm.

Gold Sector Rally Intensifies as Franco-Nevada Surges 2.68%
The gold sector is rallying on silver’s 100% YTD surge and gold’s 57% gain. Franco-Nevada (FNV), WPM’s top peer, is up 2.68% intraday, reflecting the sector’s strength. While WPM’s 4.65% gain outpaces FNV, both benefit from the same macro drivers: lower real yields, dollar weakness, and green energy demand. Silver-focused miners like Pan American Silver and Hecla Mining are also surging, underscoring the sector’s bifurcation between gold and silver plays.

Options and ETFs Highlight WPM’s Volatility—Strategies for Bulls and Bears
• MACD: 2.09 (bullish divergence), RSI: 64.12 (neutral), Bollinger Bands: Price at 118.085 (above upper band of 113.17)
• 200D MA: 92.08 (far below), 50D MA: 103.24 (support), 100D MA: 101.86 (support)

WPM’s technicals suggest a continuation of its bullish trend. The stock is trading above its 50D and 100D MAs, with RSI in neutral territory and MACD showing positive momentum. Key support levels at $107.14 (200D MA) and $105.88 (middle Bollinger Band) are critical for trend sustainability. Aggressive bulls may consider WPM20251219C113 and WPM20251219C114 for leveraged exposure.

WPM20251219C113 (Call, $113 strike, 12/19 expiry):
• IV: 48.26% (moderate), Leverage Ratio: 18.05%, Delta: 0.728, Theta: -0.4729, Gamma: 0.0371
• Payoff at 5% upside (124.00): $11.00 per contract. This call offers high leverage and gamma, ideal for a continuation of WPM’s rally.

WPM20251219C114 (Call, $114 strike, 12/19 expiry):
• IV: 36.60% (low), Leverage Ratio: 23.07%, Delta: 0.7346, Theta: -0.4412, Gamma: 0.0484
• Payoff at 5% upside (124.00): $10.00 per contract. This option balances liquidity and leverage, with strong gamma to benefit from price acceleration.

Aggressive bulls should target a break above $118.95 (52-week high) to confirm the trend. A close below $112.59 (intraday low) would invalidate the bullish case.

Backtest Wheaton Precious Stock Performance
The backtest of WPM's performance after an intraday surge of at least 5% from 2022 to the present shows favorable results. The 3-Day win rate is 55.05%, the 10-Day win rate is 57.23%, and the 30-Day win rate is 62.77%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 6.32%, which occurred on day 57, suggesting that WPM can deliver decent gains following a 5% intraday surge.

WPM’s Momentum Unlikely to Slow—Act Now on Bullish Setup
WPM’s rally is underpinned by structural demand for gold and silver, analyst upgrades, and a favorable macro environment. The stock’s 4.65% surge and 52-week high suggest a continuation of its bullish trajectory, supported by its 50D and 100D MAs. Investors should monitor the $112.59 support level and watch for a breakout above $118.95 to confirm the trend. Meanwhile, Franco-Nevada’s 2.68% gain highlights the sector’s strength. Aggressive bulls should consider WPM20251219C113 and WPM20251219C114 for leveraged exposure if WPM holds above $112.59.