US Gold (USAU) Stock Surges Nearly 20% On Russell Index Inclusion: What's Going On?

Shares of US Gold Corp USAU have jumped 19.9% to $13.97 since Monday's open, including a 3.7% gain on Thursday, after the company announced its upcoming inclusion in the Russell 3000 and Russell 2000 indexes. The move, effective June 30, follows FTSE Russell's preliminary list of additions released May 23.

What To Know: U.S. Gold's inclusion is seen as a notable milestone, increasing its visibility among institutional investors and enabling its stock to be added to various growth and value index funds.

"We believe our inclusion represents a validation of the momentum we’re building," said Chairman Luke Norman, citing ongoing development of the CK Gold Project in Wyoming.

The rally comes despite broader market hesitation. On Wednesday, the Russell 2000 slipped amid signs of economic weakness. Services sector activity contracted for the first time since December, and private job growth missed expectations by a wide margin, raising concerns over consumer demand and inflation.

Gold prices have also climbed this week as investors sought safety, adding to the tailwinds for U.S. Gold. The company’s stock appears to be benefiting from both strong company-specific news and a favorable commodities environment.

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How To Buy USAU Stock

By now you're likely curious about how to participate in the market for U.S. Gold – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of U.S. Gold, which is trading at $13.47 as of publishing time, $100 would buy you 7.42 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, USAU has a 52-week high of $13.99 and a 52-week low of $4.71.

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