Shares of gold miners jumped on Monday, as bullion prices surged to a record high of US$5,100 an ounce, extending a historic rally driven by safe-haven demand amid geopolitical uncertainties and market volatility.
Gold rose about 64 per cent in 2025, its steepest annual increase since 1979, fuelled by U.S. monetary policy easing, robust central bank buying and investor flows into ETFs as a hedge against global policy risks and macro uncertainty.
A low-interest-rate environment and economic uncertainty traditionally favour non-yielding assets such as gold.
“We now see gold reaching US$6,000 per ounce by year-end, with the caveat that this is probably a conservative estimate and it could well go higher,” said analysts at Societe Generale.
Bullion prices have set consecutive record peaks over the past week and have already risen more than 18 per cent this year.
“As long as the dollar stays under pressure, central banks remain net buyers of gold, and governments continue flirting with FX intervention, it is difficult to see what really forces this market to roll over, aside from a wave of profit-taking,” said Fawad Razaqzada, market analyst at City Index.
A higher gold price environment typically boosts miners’ revenues and margins, strengthens cash flows and balance sheets, and gives companies more room to fund expansion, dividends or debt reduction.
Top miners Newmont rose 3 per cent and Barrick Mining climbed 2.3 per cent.
Canadian miners Agnico Eagle Mines rose 2.6 per cent and Kinross Gold gained nearly 4 per cent.
Tracking the bullion rally, silver prices scaled a new high above US$100 an ounce on Friday, building on their record 147 per cent rise last year.
“We expect a period of ’stronger for longer’ silver prices to persist in the near to medium term,” said Scotiabank analysts.
Shares of Hecla Mining and Coeur Mining rose 4.8 per cent and 2.7 per cent, respectively.
Canada-based Endeavour Silver, Silvercorp Metals and Wheaton Precious Metals added between 4 per cent and 6 per cent.
In addition, ETFs abrdn Physical Silver Shares and iShares Silver Trust each jumped 11 per cent.