Gold miners surge as bullion hits record $5,400 on Iran tensions
Precious metals producers rally near 52-week highs as geopolitical instability and weakening dollar boost safe-haven demand
Precious metals mining stocks rallied in late trading Wednesday as gold surged past $5,400 per ounce to a record high, driven by escalating geopolitical tensions involving the United States and Iran and a weakening U.S. dollar.
Barrick Gold (GOLD) shares jumped 5.6% to $53.99, surpassing their 52-week high of $52.92. Newmont Corporation (NEM) advanced 3.9% to $131.95, also exceeding its 52-week peak of $129.25. Agnico Eagle Mines (AEM) climbed 3.2% to $222.99, trading just below its 52-week high of $223.44.
Spot gold touched an intraday record of $5,418.39 during the session, marking a gain of more than 25% so far this year following a 64% surge in 2025, according to market data from Trading Economics. The precious metal has surged as tensions between Washington and Tehran intensified, with President Donald Trump urging Iran to negotiate on nuclear weapons and Tehran threatening retaliation against the U.S., Israel, and their supporters.
The rally in mining equities comes as Bloomberg Intelligence projects 2026 could be the strongest profit year for the mining sector, with potential EBITDA upside of 18-21% should current metal prices be sustained. Gold miners experienced exceptional performance in 2025, with equities gaining 163% as bullion prices rose nearly 65%, according to Baker Steel Capital.
"The outlook for gold mining equities is highly constructive for 2026, driven by expanding margins and increasing profitability," Baker Steel analysts wrote in their outlook, noting strong structural support for gold prices amid ongoing global uncertainty.
The Federal Reserve's decision to maintain interest rates while markets anticipate future cuts has also bolstered gold's appeal, reducing the opportunity cost of holding non-yielding assets. A weakening dollar, which makes dollar-priced commodities more attractive to foreign buyers, has provided additional support to the rally.
Silver, often seen as a more volatile cousin to gold, also reached record levels, though the specific price point wasn't immediately available in the data reviewed. The dual surge in precious metals underscores the breadth of investor flight to safety during the current period of geopolitical stress.
Analysts at major institutions remain broadly positive on the gold mining sector, with strong buy ratings dominating coverage of the largest producers. Newmont carries an average price target of $121.80, while Agnico Eagle's target sits at $214.73, according to recent analyst consensus data.