Gold prices jumped in 2024 buoyed by increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing, and continuous purchasing by central banks. Gold has appreciated more than 15% so far this year. Gold prices are currently around $2,420 an ounce, following the recent release of several key U.S. economic data that were weaker than expected. 

The declining inflation rate as shown by several measures of inflation, soft job additions, a higher unemployment rate and lower consumer spending have fueled expectations that the Fed will start interest rate cut from September.

Moreover, the World Gold Council (WGC) recently said that the gold mining industry is suffering from a scarcity of deposits of the yellow metal. WGC Chief Market Strategist John Reade said “The bigger picture, I think about mine production is that, effectively, it plateaued around 2016, 2018 and we’ve seen no growth since then.”

As gold miners have already explored prospective areas, new mines are hard to be identified. Gold mining is a very lengthy process by nature. Moreover, slow-moving government clearances create more hurdles for miners.

However, on the demand side, the use of gold in energy, healthcare and technology is rising. India and China account for around 50% of consumers’ gold demand. Economic strength in India is fueling wealth-driven buying. 

Physical demand has also been strong in China due to a weaker yuan, a volatile stock market and comparatively low deposit rates. investors are thus exploring alternatives for their savings.

The yellow metal has long been considered a safe-haven investment amid financial or political uncertainty. Gold demand continues to be on the rise from central banks. Therefore, there will be an eventual demand-supply imbalance, which is likely to drive gold prices.

Our Top Picks

We have narrowed our search to five gold stocks with strong potential for the rest of 2024. These stocks have seen earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Barrick Gold Corp. (GOLD Quick QuoteGOLD - Free Report) is expected to gain from the progress in key growth projects including Goldrush, the Pueblo Viejo expansion, Lumwana Super Pit and Reko Diq, which are likely to significantly contribute to its production. 

GOLD continues to focus on high-return investments, particularly in Nevada, bolstered by successful exploration programs and ongoing project executions. The merger with Randgold also fortified GOLD’s position in the industry, now owning top-tier assets. The joint venture with Newmont provides additional upsides.

Zacks Rank #2 Barrick Gold has an expected revenue and earnings growth rate of 10.5% and 27.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the last 60 days. 

Eldorado Gold Corp. (EGO Quick QuoteEGO - Free Report) is engaged in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. EGO primarily produces gold, as well as silver, lead, and zinc. EGO holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey, Lamaque complex located in Canada, and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as an 80.5% interest in Certej development projects in Romania.

Zacks Rank #1 Eldorado Gold has an expected revenue and earnings growth rate of 25% and 91.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.1% over the last 60 days. 

Kinross Gold Corp. (KGC Quick QuoteKGC - Free Report) is engaged in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. KGC ranks among the top 10 gold mining companies in the world, with a 2023 production of around 2.1 million gold equivalent ounces. 

KGC’s operations are primarily located in - the Americas (roughly 71% of 2023 production). It holds major assets in Canada and the United States. Although KGC is mainly involved in the exploration and operation of gold mines, it also produces and sells silver.

Zacks Rank #1 Kinross Gold has an expected revenue and earnings growth rate of 6.1% and 18.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the last 60 days. 

New Gold Inc. (NGD Quick QuoteNGD - Free Report) is an intermediate gold mining company that develops and operates mineral properties in Canada. NGD primarily explores for gold, silver, and copper deposits. NGD’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia.

Zacks Rank #1 New Gold has an expected revenue and earnings growth rate of 15.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.1% over the last 60 days. 

Equinox Gold Corp. (EQX Quick QuoteEQX - Free Report) is engaged in the acquisition, exploration and development of mineral deposits. EQX primarily explores for gold, copper and silver deposits. EQX’s principal properties include the Aurizona gold mine in the state of Maranhao, Brazil and the Mesquite gold mine, in California.

Zacks Rank #2 Equinox Gold has an expected revenue and earnings growth rate of 48.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.6% over the last 60 days.