Buy 5 Gold Stocks for Near-Term Gains on Rising Geopolitical Conflicts

Geopolitical tensions and central bank activity are driving gold prices near $3,400/ounce, benefiting gold mining stocks; Goldman Sachs and JP Morgan forecast prices could reach $4,000/ounce by 2026. Zacks highlights Franco-Nevada (FNV), Newmont (NEM), Kinross Gold (KGC), AngloGold Ashanti (AU), and Harmony Gold Mining (HMY) as promising picks, citing strong growth prospects and favorable Zacks Ranks. FNV's 2025 earnings are projected to grow 39.6%, while KGC's are expected to increase by 63.2% due to mine expansions.

Analysis

Gold prices are experiencing a significant upward trend, recently trading around $3,400 per ounce after touching $3,415.57 on May 5th, driven by heightened geopolitical conflicts, notably in the Middle East and between Russia and Ukraine, alongside a specific call by former President Trump for an evacuation of Tehran on June 16th. This environment bolsters gold's safe-haven appeal. Further supporting gold prices are structural factors such as a reported scarcity of new gold deposits by the World Gold Council, continuous buying from central banks of emerging economies, and the prospect of global interest rate cuts which reduce the opportunity cost of holding non-yielding bullion. Industrial demand for gold in energy, healthcare, and technology is also rising, suggesting a potential demand-supply imbalance. Major investment banks like Goldman Sachs and JP Morgan project gold could reach $4,000 per ounce by 2026, indicating sustained bullish momentum. Consequently, gold mining equities are benefiting, with several companies showing strong growth prospects and favorable analyst revisions. Franco-Nevada (FNV) projects a 39.6% earnings growth for 2025 and current year revenue growth of 32.2%, with its earnings estimates improving 3.7% in the last 30 days, driven by streaming agreements and cost management despite production halts at Cobre Panama. Kinross Gold (KGC) forecasts a 63.2% earnings increase for the current year, with estimates up 6.7%, supported by expansions at its Tasiast mine and new project momentum. Newmont (NEM) anticipates 20.1% current year earnings growth, with estimates up 6.6%, aided by projects like Tanami expansion and the Ahafo North project, which is expected to commence commercial production in the second half of 2025. AngloGold Ashanti (AU) expects current year revenue growth of 51.1% and earnings growth exceeding 100%, with its earnings consensus up by a significant 41.1% over the past month. Harmony Gold Mining (HMY) also projects current year earnings growth over 100%, with estimates up 22.2%, driven by development projects like Wafi-Golpu and Eva Copper, and efforts to reduce debt. All five companies carry a Zacks Rank of #1 (Strong Buy) or #2 (Buy).

Key Decisions for Investors

• Investors should consider allocating to or increasing exposure in gold mining equities, such as FNV, KGC, NEM, AU, and HMY, given the strong gold price momentum, favorable Zacks Ranks, and robust company-specific growth catalysts.