With tariff fears, geopolitical tension, U.S. dollar weakness, and strong central bank buying, gold is at record highs above $3,300.
From here, gold could rally to $3,500 says Bank of America. “Uncertainty around Trump Administration trade policies could continue to push the [U.S. dollar] USD lower, further supporting gold prices near-term,” added the firm, as quoted by CNBC.
Analysts at Goldman Sachs also raised its gold price forecast, now noting, “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.” All of which should also drive gold stocks, like Newmont (NEM) and Barrick Gold (GOLD) even higher.
Fueling even more momentum, China’s central bank is still buying gold.
In fact, its reserves soared to 73.61 million troy ounces at the end of February from 73.45 million in January. “Global central banks, a major source of gold demand, bought more than 1,000 metric tons of the metal for the third year in a row in 2024 and are expected to remain active buyers in 2025, according to the World Gold Council,” added Reuters.
While NEM and GOLD are still attractive opportunities, we also still like the gold ETFs we’ve been mentioning here. Those include:
VanEck Vectors Gold Miners ETF (SYM: GDX)
One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX). Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost.
With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.
Even better, shares of mining stocks often outperform the price of gold. That’s because higher gold prices can result in increased profit margins and free cash flow for gold miners. In addition, top gold miners often have limited exposure to riskier mining projects.
There’s also the Sprott Junior Gold Miners ETF (SYM: SGDJ).
With an expense ratio of 0.5%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies whose stocks are listed on regulated exchanges.
Some of its top holdings include Lundin Gold Inc., Seabridge Gold, Equinox Gold, Victoria Gold, Westgold Resources, Osisko Mining, K92 Mining Inc., Novagold Resources, Regis Resources, New Gold Inc., Sabina Gold & Silver, Argonaut Gold, Centerra Gold, Coeur Mining, Skeena Resources, and K92 Mining to name a few.
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