Check out gold if you’re looking for some of the best stocks to buy now.
After testing an all-time high of $2,480.75, the metal could easily test $2,500 or even $3,000 this year. All this is in hopes that the Federal Reserve will cut interest rates this year, thanks to growing confidence that inflation is headed back to its 2% target.
Goldman Sachs is out with a $3,000 target price, as noted by BarChart.com. It “sees continued tailwinds for gold amid an ongoing flight to safety due to geopolitical risks, continued buying of the commodity by central banks and rising demand among Asian households.”
Even Citi analysts say gold could test $3,000 by 2025, noting that “solid gold demand in the second half of the year could drive prices as high as $2,600 an ounce, with investors playing catch-up with the broader marketplace.”
If that’s the case, investors should jump into hot gold stocks to buy, such as:
Barrick Gold (GOLD)
At $18.88, Barrick Gold (NYSE:GOLD) is one of the best gold stocks to buy.
From here, if it can break above the $20 resistance, it could retest $22. Helping, the company just reported preliminary second-quarter production of 948,000 ounces of gold and 43,000 metric tons of copper. That’s comparable to the 940,000 ounces of gold and 40,000 metric tons of copper in the first quarter.
Even better, according to the company, “As previously guided, Barrick’s gold and copper production in 2024 is expected to progressively increase each quarter through the year with a higher weighting in the second half. The Company remains on track to achieve our full-year gold and copper guidance.”
CIBC analysts also reiterated an outperform rating on GOLD with a price target of $27. Jefferies’ analysts also reiterated a buy rating on GOLD with a price target of $23. The firm expects Barrick Gold to see improving earnings and cash flow.
Newmont (NEM)
At $48.27, Newmont (NYSE:NEM) is a bit overbought at resistance dating back to March 2023. It’s also over-extended on RSI, MACD and Williams’ %R.
I’d wait for it to pull back first before going long. The last thing you want to do is buy it a peak and watch it drop on a healthy pullback.
Others, including Jefferies’ analysts, appear to like it, too. With a buy rating and a $54 price target, the firm is bullish on Newmont’s improving quarter-over-quarter earnings growth and positive free cash flow.
CIBC analysts also upgraded NEM to outperform with a price target of $61 from $46 a share. The firm also raised “its gold price forecast to $2,290/oz in 2024 and $2,600 in 2025, and says its upgrade of Newmont reflects the company’s status as the S&P 500’s only listed gold producer.”
Sprott Junior Gold Miners ETF (SGDJ)
Or, if you prefer to diversify at a lower cost, there’s an ETF like the Sprott Junior Gold Miners ETF (NYSEARCA:SGDJ). With an expense ratio of 0.35%, 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 (OTCMKTS:LUGDF), Seabridge Gold (NYSE:SA), Equinox Gold (NYSEAMERICAN:EQX), Victoria Gold (OTCMKTS:VITFF) and Westgold Resources (OTCMKTS:WGXRF) to name a few.
Even better, the portfolio, which holds 45 stocks, is rebalanced semi-annually.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
