Wheaton Precious Metals Surges 5.3% on Gold Stream Expansion and Analyst Upgrades—Is This the Start of a New Bull Run?

Summary
• Wheaton Precious Metals (WPM) rockets 5.3% to a 52-week high of $118.84 amid a $300 million Hemlo Mine gold stream deal.
• Analysts at RBC and Jefferies upgrade WPM to 'Outperform,' citing long-term reserve growth and gold price tailwinds.
• Options volatility surges as 20 contracts trade with implied volatility ratios between 18.79% and 87.28%.

Wheaton Precious Metals is riding a wave of optimism as its stock hits a 52-week high, driven by a landmark gold stream agreement and a flurry of analyst upgrades. With gold prices surging on Fed dovishness and geopolitical tensions, WPM’s rally reflects a perfect storm of sector momentum and strategic corporate moves. The stock’s intraday range—from $112.595 to $118.84—underscores the intensity of the buying frenzy.

Hemlo Mine Gold Stream and Analyst Upgrades Fuel WPM's Rally
WPM’s 5.3% surge is anchored by its $300 million Hemlo Mine gold stream deal, which expands long-term reserves and secures future cash flows. Analysts at RBC and Jefferies upgraded the stock to 'Outperform,' with RBC setting a $130 price target—a 10% upside from current levels. The Zacks Investment Research report highlights a 87.2% earnings growth forecast for 2025, driven by higher gold prices and operational efficiency. Meanwhile, the Fed’s dovish pivot and central bank gold purchases have lifted gold to $4,279/oz, directly boosting WPM’s streaming revenue model. Technical indicators like the MACD (2.09) and RSI (64.12) confirm bullish momentum, with the stock piercing its 52-week high of $118.81.

Gold Sector Rally Gains Momentum as NEM Surges 5.6% Alongside WPM
The Gold sector is in sync with WPM’s rally, led by Newmont (NEM) surging 5.6% to $118.84. Leveraged ETFs like the U.S. Global GO Gold and Precious Metal Miners ETF (GOAU) and VanEck Gold Miners ETF (GDX) are up 3.43% and 4.68%, respectively, reflecting sector-wide optimism. WPM’s 5.3% gain aligns with gold’s 1.27% rise to $4,279/oz, as central bank demand and Fed rate cuts drive safe-haven flows. The sector’s strength is further underpinned by geopolitical risks and a dovish Fed, making WPM’s gold stream expansion a timely catalyst.

Options and ETFs Highlight Bullish Momentum in WPM's Rally
• MACD: 2.09 (bullish divergence)
• RSI: 64.12 (overbought but trending)
• Bollinger Bands: Upper at $113.17, Middle at $105.88, Lower at $98.59
• 200D MA: $92.08 (far below current price)

WPM’s technicals scream bullish continuation. The stock is trading above its 200-day average and within a short-term bullish trend. Key support at $107.14 and resistance at $118.84 (52-week high) define the near-term range. For leveraged exposure, the U.S. Global GO Gold and Precious Metal Miners ETF (GOAU) and VanEck Gold Miners ETF (GDX) offer amplified sector bets.

Top Options Picks:
• WPM20251219C115 (Call, $115 strike, 12/19 expiry):
- IV: 34.06% (moderate)
- Leverage Ratio: 24.01%
- Delta: 0.7449 (moderate sensitivity)
- Theta: -0.4396 (high time decay)
- Gamma: 0.0505 (high sensitivity to price swings)
- Turnover: 40,212 (liquid)
- Payoff (5% upside): $124.78 → $9.78 profit per contract. This call offers a balance of leverage and liquidity, ideal for capitalizing on a breakout above $118.84.

• WPM20251219C116 (Call, $116 strike, 12/19 expiry):
- IV: 18.79% (low)
- Leverage Ratio: 35.69%
- Delta: 0.8069 (high sensitivity)
- Theta: -0.4160 (high time decay)
- Gamma: 0.0781 (very high sensitivity)
- Turnover: 53,947 (highly liquid)
- Payoff (5% upside): $124.78 → $8.78 profit per contract. This contract’s high gamma and liquidity make it a top pick for aggressive bulls expecting a sharp move.

Action Alert: Aggressive bulls should buy WPM20251219C116 into a break above $118.84. Conservative traders can use GOAU or GDX for sector exposure.

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.

Bullish Momentum Unlikely to Subside as WPM Hits 52-Week High
WPM’s rally is underpinned by a gold stream deal, analyst upgrades, and a dovish Fed environment. The stock’s 5.3% surge to $118.84—matching its 52-week high—signals strong institutional and retail demand. Key levels to watch include $118.84 (resistance) and $107.14 (support). The sector leader, Newmont (NEM), is up 5.6%, reinforcing the sector’s strength. Investors should prioritize WPM20251219C116 for aggressive upside or GOAU for diversified exposure. Watch for a breakout above $118.84 or a breakdown below $107.14 to confirm the trend.