Jan 26 (Reuters) - Shares of gold miners jumped in premarket trading on Monday, as bullion prices surged to a record high of $5,100 an ounce, extending a historic rally driven by safe-haven demand
Gold miner shares jump as bullion prices hit $5,100/oz record high
Impact of Rising Gold Prices on Mining Stocks
Jan 26 (Reuters) - Shares of gold miners jumped in premarket trading on Monday, as bullion prices surged to a record high of $5,100 an ounce, extending a historic rally driven by safe-haven demand amid geopolitical uncertainties and market volatility.
Gold rose about 64% in 2025, its steepest annual increase since 1979, fueled 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. [GOL/]
A low-interest-rate environment and economic uncertainty traditionally favour non-yielding assets such as gold.
Bullion prices have set consecutive record peaks over the past week and have already risen more than 18% this year.
Market Reactions to Gold Price Surge
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.
Factors Driving Gold Prices Higher
Top miner Newmont rose 4.4% and U.S.-listed shares of Barrick Mining climbed 3.8%.
U.S.-listed shares of South African miners Gold Fields, AngloGold Ashanti, Harmony Gold and Sibanye Stillwater were up between nearly 2% and 4.3%.
Future Expectations for Gold Prices
Market expectations of potential interest cuts in the U.S. in 2026 have also contributed to the upward momentum in gold prices.
U.S.-listed shares of Canadian miners Agnico Eagle Mines and Kinross Gold were each up 4%.
(Reporting by Pooja Menon in Bengaluru; Editing by Maju Samuel)
