Gold prices continue to soar, repeatedly hitting record highs. On Tuesday, the precious metal hit a new peak of $2,531.60 per ounce, after setting a previous record last week. Spot gold prices were around $2,490 on Friday. This surge has boosted gold mining stocks, with the VanEck Gold Miners ETF reaching its highest level since April 2022. Analysts predict further gains for gold. UBS forecasts gold could rise to $2,700 per ounce by mid-2025, citing geopolitical tensions such as Middle East conflicts and the Russia-Ukraine war. “Gold serves as a conservative asset and a hedge against geopolitical risks,” UBS stated.
David Neuhauser of Livermore Partners shares this bullish outlook, predicting gold could hit $2,700 by 2025 and $3,000 within three years. He attributes this to a weaker dollar, driven by economic and political factors, which boosts gold prices as it is typically priced in U.S. dollars and considered a hedge against inflation and market volatility.
ANZ Research anticipates sustained demand for gold, noting strong imports by China and India, and central bank purchases expected to reach 800 tons in 2024. “Unidentified gold buying is offsetting weaknesses in reported monthly buying,” ANZ strategists commented.
In investment circles, Wolfe Research highlights the potential for gold mining stocks to outperform, with a particular focus on the VanEck Gold Miners ETF. Two notable stocks are Royal Gold, touted for its compelling setup, and Newmont Corporation, expected to see significant growth. David Neuhauser also recommends junior gold miners, including Amaroq Minerals, Hochschild Mining, Coeur Mining, and Canada-listed Wesdome, as promising investments during this gold rush.
— CNBC’s Michael Bloom contributed to this report.
Original Story https://www.cnbc.com/2024/08/23/gold-mining-stocks-to-buy-into-the-gold-rush-analysts.html
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