With gold quickly approaching $2,200, keep an eye on Newmont Mining (NEM).
At the moment, it’s consolidating at $34. But with gold on the run, we believe NEM could break significantly higher from here.
For one, safe-haven demand for gold continues to be supportive amid geopolitical uncertainty with ongoing wars and the upcoming US election.
Helping, China’s central bank just added even more gold, supporting the precious metal’s surge to record higher. In fact, in February, China added another 390,000 troy ounces of gold, raising its total holdings to 72.58 million troy ounces.
Plus, according to Goldman Sachs, gold could push even higher. The Fed meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” they said, as quoted by Yahoo Finance. The firm also upgraded their 2024 gold forecast to $2,300 by the end of the year.
Helping, analysts at Jefferies have a buy rating on the stock, with a $38 price target.