Gold Likely to Shine on Demand-Supply Imbalance: 5 Top Picks

Industry Overview - Gold prices surged in 2024 due to increased geopolitical tensions, a depreciating U.S. dollar, potential monetary policy easing, and continuous central bank purchases [1] - The World Gold Council reported a scarcity of gold deposits, with mine production plateauing since around 2016-2018 [1] - Strong physical demand for gold in China is driven by a weaker yuan, a volatile stock market, and low deposit rates [1][2] - Demand for gold in energy, healthcare, and technology sectors is rising, with India and China accounting for approximately 50% of global gold demand [2] Company Analysis Barrick Gold Corp. (GOLD) - Expected revenue and earnings growth rates of 10.5% and 26.2% respectively for the current year [5] - Zacks Consensus Estimate for current-year earnings improved by 7% over the last 30 days [5] - Current dividend yield is 2.5% [5] AngloGold Ashanti plc (AU) - Expected revenue and earnings growth rates of 12.7% and over 100% respectively for the current year [6] - Zacks Consensus Estimate for current-year earnings improved by 28.8% over the last 60 days [6] - Current dividend yield is 1% [6] Gold Fields Ltd. (GFI) - Expected revenue and earnings growth rates of 28.6% and 50.5% respectively for the current year [7] - Zacks Consensus Estimate for current-year earnings improved by 21.7% over the last 60 days [7] - Current dividend yield is 2.3% [7] Harmony Gold Mining Co. Ltd. (HMY) - Expected revenue and earnings growth rates of 15% and 43.6% respectively for next year [8] - Zacks Consensus Estimate for next-year earnings improved by 35% over the last 60 days [8] - Current dividend yield is 1.5% [8] Agnico Eagle Mines Ltd. (AEM) - Expected revenue and earnings growth rates of 9.9% and 43.5% respectively for the current year [9] - Zacks Consensus Estimate for next-year earnings improved by 0.6% over the last seven days [9] - Current dividend yield is 2.5% [9]