Gold Miners Soar as Precious Metal Breaches $4,300/oz
Mining stocks like Newmont and ETFs like GDX are posting massive gains as analysts at Goldman Sachs and Bank of America project prices could near $5,000.
Gold mining companies are experiencing a new golden age as the price of the underlying metal has surged to historic highs, recently trading above $4,350 per ounce. The sustained rally is delivering a powerful boost to producers’ profit margins and sending their share prices soaring, with major industry ETFs posting triple-digit gains this year.
The VanEck Gold Miners ETF (GDX), a widely held benchmark for the sector, has seen its value increase by more than 150% year-to-date, reflecting a torrent of investor capital moving into a long-neglected industry. The fund was recently trading around $85.66. This explosive performance is directly tied to the soaring price of bullion, which has been fueled by a confluence of macroeconomic factors. Persistent geopolitical uncertainty, robust purchasing from central banks, and widespread expectations of interest rate cuts from the U.S. Federal Reserve have combined to make gold a top-performing asset.
For mining companies, the economics are straightforward and compelling. With all-in sustaining costs for many major producers well below current spot prices, the surge in gold directly translates to significantly wider profit margins. This earnings leverage is attracting both institutional and retail investors.
Newmont Corporation (NEM), one of the world’s largest gold producers, exemplifies the trend. The company's stock was trading at $100.60 in recent sessions, a gain of over 2.5% on the day and approaching its 52-week high of $102.12. The Denver-based miner, with a market capitalization exceeding $107 billion, has strong backing from analysts, with 17 of 21 tracked analysts rating the stock a 'Buy' or 'Strong Buy'.
Wall Street is forecasting that the rally may have further to run. In a recent research note, analysts at Goldman Sachs projected that gold has “significant upside” potential, forecasting prices could reach $4,900 per ounce by the end of 2026. Similarly, Bank of America has a price target of $5,000 for 2026, citing that the market remains 'underinvested' despite the historic run-up.
This bullish outlook is predicated on the continuation of current macro trends. Any deviation from the Federal Reserve’s anticipated dovish pivot could present a headwind. However, for now, the momentum is firmly behind gold and the companies that pull it from the earth, which are reaping the rewards of a bull market that shows few signs of slowing.