SHARES in gold mining companies surged on Monday after bullion prices climbed to a record $5,100 per ounce, extending a historic rally fuelled by safe-haven demand amid geopolitical tensions and market volatility, said Reuters.
Gold advanced 64% in 2025, its steepest annual gain since 1979, driven by US monetary policy easing, central bank purchasing and exchange-traded fund inflows hedging against policy risks and macroeconomic uncertainty.
Societe Generale analysts said gold could reach $6,000/oz by year-end, adding this estimate was probably conservative. Bullion has already risen over 18% this year.
Higher gold prices typically enhance miners’ revenues and margins whilst strengthening cash flows and balance sheets, enabling companies to fund expansion, dividends or debt reduction.
Leading producers Newmont gained 2.4% whilst Barrick Mining added 2.6%. Canadian miners Agnico Eagle Mines rose nearly 2% and Kinross Gold climbed nearly 3%. Market expectations of potential US interest rate cuts in 2026 have supported the upward momentum.
Silver prices scaled above $100/oz on Friday following last year’s 147% surge. Scotiabank analysts said they expected “stronger for longer” silver prices near to medium term.
Silver miners Hecla Mining and Coeur Mining rose 4.7% and 4% respectively. Canadian producers Endeavour Silver, Silvercorp Metals and Wheaton Precious Metals gained between 4.1% and 7.3%. ETFs abrdn Physical Silver Shares and iShares Silver Trust each jumped 7.8%.
