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Investing.com - Investor interest in gold equities remains "healthy and growing," but is not becoming "overheated," according to analysts at RBC Capital Markets.
In a note to clients, the brokerage said investors have been particularly focused on Barrick (NYSE:B), a miner that is seen balancing "deep value with lower near-term cash flow and few upcoming milestones."
Such "[c]atalysts across nearly all North American senior producers are scarce through year-end," the analysts added.
One exception they noted was miner Gold Fields (NYSE:GFI), whcih is ramping up its Salares Norte mine in Chile, potentially has an upcoming capital markets day and could unveil an update to its Windfall project in Canada in the fourth quarter. All these are tipped to be "meaningful" events for investors to keep tabs on.
The analysts said mid-cap gold stocks have also received more recent attention from investors. Gold firms IAMGold (NYSE:IAG), Agnico Eagle (NYSE:AEM) and Equinox (TSX:EQX) have garnered much of the interest, while a higher volume of questions have swirled around companies like B2Gold (TSX:BTO), Pan American Silver (NYSE:PAAS), Artemis (TSXV:ARTG), Torex (TSX:TXG) and Eldorado (NYSE:EGO), the RBC strategists said.
The comments come as spot gold prices have shot up over much of this year thanks to a spike in appeal of the traditional safe-haven status of the yellow metal.
Gold prices have jumped by around 25% so far this year, although bullion retreated on Friday, hovering around its lowest level since late May.
A formal trade agreement between the U.S. and China over expediting rare earth shipments, as well as an enduring Israel-Iran ceasefire, bolstered riskier assets.
Meanwhile, U.S. consumer spending unexpectedly dropped in May, while monthly inflation remain relatively muted, boosting some bets that the Federal Reserve will opt to lower interest rates as soon as September. Lower borrowing costs can make gold more favorable by decreasing the opportunity cost of holding the non-yielding asset.