Gold has gained 15.7% so far this year, currently trading near $3,030 per ounce. Gold futures hit a record of $3,065.20 per ounce yesterday. The metal is being supported by dovish signals from the Federal Reserve and safe-haven demand. On Wednesday, the Fed acknowledged increased economic uncertainty but affirmed plans to keep the benchmark federal funds rate at 4.25-4.50%. Escalating geopolitical tensions in the Middle East and concerns over a potential trade war have strengthened gold’s appeal.
Riding on this momentum, the Zacks Mining - Gold industry has gained 32.9% year to date, significantly outperforming the Zacks Basic Materials sector’s 8.3% rise. The S&P 500 has declined 4% in the same timeframe. Investors should consider companies like Agnico Eagle Mines AEM, Alamos Gold AGI, Kinross Gold KGC and New Gold NGD, which are poised for improvement, backed by their strong balance sheets and growth initiatives.
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Gold Demand in 2025 Expected to Sustain 2024's Momentum
Per the World Gold Council, gold demand was a record 4,974 tons in 2024. In value terms, demand reached $382 billion, which was the highest ever.
Central banks continued to be a strong contributor, with buying surpassing 1,000 tons for the third year in a row. Annual investment reached a four-year high of 1,180 tons. Gold ETFs stabilized after three years of heavy outflows. Technology demand grew 7% in 2024, largely driven by continued growth in AI adoption. However, gold jewelry demand was weak, reflecting higher prices.
In 2025, central banks are expected to continue the 1,000-ton-plus buying streak. Investment demand is likely to stay robust, supported by lower interest rates, geopolitical risks and ongoing economic uncertainty. Additionally, demand from China is expected to remain strong. However, jewelry demand is anticipated to continue to be impacted. With solid demand and constrained supply, gold prices are poised for an upside in 2025.
4 Gold Stocks to Keep Tabs On
We have handpicked four gold-mining stocks, which currently carry a Zacks Rank #3 (Hold) and a VGM Score of A or B, and have earnings growth potential.
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Agnico Eagle Mines: The company recently closed the acquisition of O3 Mining, gaining ownership of the Marban Alliance property. It includes the Marban deposit, which is an advanced exploration project. The integration of the Marban Alliance property with the AEM’s Canadian Malartic land package will create significant and unique synergies. Its focus remains on extending mine life at existing operations, testing near-mine opportunities and advancing key value driver projects. Exploration priorities for 2025 include mineral resource conversion and expansion at the Detour Lake underground project and East Gouldie at Canadian Malartic, as well as advancing Hope Bay.
AEM has managed to lower costs by 8% through the optimization of drilling productivity and innovation efforts. Its efforts to lower debt are also commendable. Agnico Eagle has made a string of recent equity investments to grow its holdings of junior mining companies, in sync with its recent focus on increasing base metal exposure.
The Zacks Consensus Estimate for the Toronto, Canada-based gold mining company’s 2025 earnings indicates year-over-year growth of 6.4%. AEM has a trailing four-quarter earnings surprise of 16.4%, on average. The company has a long-term estimated earnings growth of 31.6%. Agnico Eagle Mines currently has a Zacks Rank #3 and a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinross Gold: The company’s strong liquidity position and substantial cash flows allow it to finance its development projects while paying down debt and driving shareholder value. Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. KGC completed the commissioning of its Manh Choh project and commenced production in the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation.
Its key development projects and exploration programs, including Great Bear in Ontario, the Redbird pit at Bald Mountain and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value.
The Zacks Consensus Estimate for this Toronto, Canada-based gold mining company’s earnings for fiscal 2025 indicates 14.7% year-over-year growth. KGC has a trailing four-quarter earnings surprise of 23.7%, on average. Kinross Gold has a long-term estimated earnings growth of 21%, and a Zacks Rank #3 and a VGM Score of A at present.
Alamos Gold: The company produced 567,000 ounces of gold in 2024, creating an annual record for the second consecutive year. This reflects the inclusion of the Magino mine after the acquisition of Argonaut Gold in July 2024, as well as strong performances from the Mulatos District and Island Gold. The company projects production to grow 24% to 680,000-730,000 ounces by 2024, driven by Island Gold district, Young Davidson and Mulatos. All-in-sustaining costs (AISC) are expected to decrease 8% over that time frame from that reported in 2024, driven by low-cost growth from Island Gold following the completion of the Phase 3+ Expansion in the first half of 2026.
AGI announced a construction decision on the Lynn Lake project in January 2025, with initial production expected in the first half of 2028. With an average annual production of 176,000 ounces over its first 10 years, Lynn Lake is anticipated to play a significant role in taking the company’s production to approximately 900,000 ounces per year (implying 59% year-over-year growth from 2024).
The Zacks Consensus Estimate for the Toronto, Canada-based company’s 2025 suggests a 61.3% year-over-year increase. AGI has a long-term earnings growth rate of 10.1%. It has a trailing four-quarter earnings surprise of 7.9%, on average. AGI currently has a Zacks Rank #3 and a VGM Score of B.
New Gold: The company projects gold production to grow 37% between 2024 and 2027. This will be driven by increasing production profiles at both Rainy River and New Afton as growth projects are completed and ramped up in the near term. Gold production is expected to average more than 400,000 ounces over the three-year period. The company is expected to see a 64% reduction in AISC over the next three years, leading to a margin expansion of 156%.
The updated Rainy River life-of-mine plan maintains a strong gold production profile. It is expected to produce approximately 300,000 ounces of gold per year over the next three years. New Afton is expected to produce an average of 125,000 ounces of gold per year.
The Zacks Consensus Estimate for Toronto, Canada-based New Gold’s 2025 earnings suggests year-over-year growth of 20% for 2025. The company has a long-term estimated earnings growth of 175%. It has a trailing four-quarter earnings surprise of 79.2%, on average. NGD has a Zacks Rank #3 and a VGM Score of A at present.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpKinross Gold Corporation (KGC) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
New Gold Inc. (NGD) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
