Jan 26 - Shares of companies that mine gold jumped in premarket trading on Monday after bullion reached a new peak of $5,100 an ounce. The move extended a historic rally in gold that market participants attribute to safe-haven demand amid geopolitical uncertainties and heightened market volatility.
Gold has advanced sharply this year, rising about 64% in 2025 - the steepest annual increase since 1979 - a gain market observers link to several converging forces. Chief among them are easing U.S. monetary policy expectations, vigorous central bank purchases of the metal, and investor flows into exchange-traded funds as a hedge against global policy risks and broader macro uncertainty.
A low-interest-rate environment and lingering economic uncertainty typically make non-yielding assets such as gold more attractive to investors. Bullion set consecutive record highs over the prior week and has already climbed more than 18% this calendar year.
Higher gold prices generally translate into stronger financial metrics for miners. Companies benefit from increased revenues and improved margins, which can strengthen cash flow and balance sheets and provide more flexibility to pursue expansion, raise dividends or reduce debt.
On Monday, top miner Newmont rose 4.4% in premarket trading. U.S.-listed shares of Barrick Mining climbed 3.8%. U.S.-listed shares of several South African miners also gained, with Gold Fields, AngloGold Ashanti, Harmony Gold and Sibanye Stillwater each advancing by amounts ranging from nearly 2% to 4.3%.
Expectations around potential interest rate cuts in the U.S. in 2026 have also been cited as a contributing factor to the upward momentum in gold prices. Among Canadian-listed names traded in the U.S., Agnico Eagle Mines and Kinross Gold each rose 4% in premarket trade.
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