After a slight pullback on Federal Reserve rate cut concerns, gold prices are reversing course.
All after New York Federal Reserve President John Williams said he expects the central bank can lower its key interest rate from here as labor market weakness poses a bigger threat than inflation. That, coupled with aggressive global central bank buying should continue to serve as a strong catalyst for gold, and for gold related stocks.
Also, according to Goldman Sachs, central banks likely bought large amounts of gold in November to diversify and hedge against geopolitical and financial risk. Goldman Sachs also reiterated that gold prices could rally to $4,900 by the end of 2026.
“The bank estimates that roughly 64 tonnes of central-bank gold demand occurred in September, and early indicators suggest November buying may have been similarly strong,” says Trading View. The firm also cited “persistent reserve diversification, continued ETF inflows as rate expectations soften, and robust physical demand from Asia as the main drivers. In its view, any temporary volatility driven by macro data is likely to be overshadowed by consistent central-bank buying and tightening supply conditions.”
That being said, you may want to invest in a yielding gold stock, like Royal Gold (RGLD).
With a yield of about 1%. Royal Gold acquires and manages precious metal streams and royalties. The company acquires stream and royalty interests or finances projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests in gold, silver, copper, nickel, zinc, lead, molybdenum, and other metals.
RGLD also paid out a quarterly dividend of 45 cents per share on October 17, as part of its 25-year history of paying consistent quarterly dividends.
Since the year began, shares of RGLD rocketed from a low of about $130 to a high of $210. That was thanks in large part to gold’s historic rally to a high of just over $4,381. Now back to $191.15, it pulled back with gold. However, with geopolitical and economic tensions still high, coupled with even more interest rate cuts from the Federal Reserve, we do expect to see further upside in gold prices and in Royal Gold.
In addition, analysts are incredibly bullish on the Royal Gold stock.
- In early October, analysts at CIBC raised their price target on RGLD by $25 to $250. The firm raised that price target to reflect its higher gold price forest of $4,500 for 2026.
- Bank of America raised its price target by $10 a share to $203.
- Raymond James raised its price target by $53 to $264, with an outperform rating, citing RGLD’s strong royalty and streaming business model.
- Scotiabank raised its price target by $52 to $246, with an outperform rating.