Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com -- Shares of major gold mining companies, including Newmont (NYSE:NEM), Barrick Gold (NYSE:GOLD), and First Majestic Silver (NYSE:AG), advanced in today’s trading session, buoyed by a surge in gold prices and a bullish analyst report from Goldman Sachs. Newmont stock rose 1.8%, Barrick Gold shares increased by 1.8%, First Majestic Silver’s stock jumped 2.8%, Anglogold Ashanti (NYSE:AU) saw a 1.5% rise, Gold Fields (NYSE:GFI) climbed 1.2%, Kinross Gold (NYSE:KGC) gained 2.1%, and the VanEck Gold Miners ETF (NYSE:GDX) was up 1.9%.
The upward movement in gold mining stocks was driven by a 1.4% increase in gold prices, which reached $3,060 an ounce. The positive market response came following Goldman Sachs’ decision to raise its gold price forecast, citing stronger-than-expected exchange-traded fund (ETF) inflows and sustained central bank demand as key factors.
Goldman Sachs analyst Lina Thomas provided further insights, stating, "We raise our end-2025 forecast to $3,300/toz (vs. $3,100) and our forecast range to $3,250-3,520, reflecting upside surprises in ETF inflows and in continued strong central bank gold demand." This revision indicates a more optimistic outlook for the precious metal’s future value, suggesting that gold prices may continue to see support from both institutional and sovereign buyers.
The report highlighted that large Asian central banks are likely to maintain their rapid pace of gold purchases for the next 3-6 years, aiming to reach the estimated range of potential gold reserve targets. Additionally, the base case forecast assumes a normalization of speculative positioning from currently elevated levels, with medium-term price risks skewed to the upside.
Goldman Sachs also reiterated its long gold trade recommendation, acknowledging that potential events such as a Russia-Ukraine peace deal or a sharp equity sell-off could offer more attractive entry points for gold investments. However, the firm also noted that newly authorized gold allocations for Chinese insurers, which amount to approximately 280 tons, may provide a price support, with demand expected to emerge on price dips.
Investors in gold mining stocks appear to be reacting to the revised forecast by Goldman Sachs, with the sector experiencing a broad lift in today’s trading. The positive sentiment in the market reflects the expectation of continued robust demand for gold, which is likely to benefit gold mining companies.
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