Gold stocks have experienced a remarkable surge in value as investors have flocked to the yellow metal amidst the current tariff-induced sell-off in the stock market.
Why Gold Stocks Are Rallying
Gold typically performs well during times of economic uncertainty, such as recession or high volatility in the stock market. When investors fear that a recession may be on the horizon, they tend to turn to gold and gold stocks as a safe-haven asset. This phenomenon has been observed time and time again throughout history. For instance, in 2008, when the global financial crisis was at its peak, gold prices soared to an all-time high of $1,922.90 per ounce. In the current situation, President Donald Trump’s announcement of reciprocal tariffs on more than 180 countries and additional tariffs on nations like China has triggered a sense of uncertainty among investors. As a result, gold prices have risen by more than 3% this morning.
Top-Performing Gold Stocks
Here are some of the top-performing gold stocks and their intraday highs as of 2 p.m. ET Wednesday:
| Stock | Intraday High |
|---|---|
| Harmony Gold Mining | 10.55% up |
| Iamgold Corp | 5.38% up |
| AngloGold Ashanti | 7.00% up |
| Newmont Corporation | 4.69% up |
Key Performances of Top Gold Stocks
- Harmony Gold Mining
- Operates in South Africa, Papua New Guinea, and Australia, with revenue rising 19% and net income surging 33% year over year during the six months ended Dec. 31, 2024.
- Iamgold Corp
- Mines in North America and West Africa, with gold production surging 43% and revenue jumping 65% to a record high of $1.6 billion in 2024.
- AngloGold Ashanti
- Pays a dividend that yields 4.1%, with revenue jumping 26% in 2024 driven by higher gold prices.
- Newmont Corporation
- Earns a net income of $3.4 billion in 2024, with cash flows generating $6.3 billion, despite high costs.
2025: A Big Year for Gold Stocks
With the current uncertainty in the market, 2025 is shaping up to be a significant year for gold stocks. Harmony Gold’s recent performances have demonstrated its resilience, and its dividend yield of 1.3% makes it an attractive option for investors. Similarly, Iamgold’s projected 10% to 22% growth in gold production for 2025 is exciting, as is Newmont’s plan to generate up to $4.3 billion from the sale of noncore assets.
Conclusion
In conclusion, the current situation has triggered a surge in gold prices, and gold stocks are rallying as investors seek safe-haven assets. With top-performing gold stocks, such as Harmony Gold, Iamgold, and Newmont, showing promising performances, investors may want to consider these stocks for their portfolios.
The best way to hedge against volatility is to have a well-diversified portfolio that includes gold stocks, along with other safe-haven assets like bonds and cash.
