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Although a stronger U.S. dollar, given the hawkish outlook for U.S. monetary policy, combined with an improvement in real yield could mean more downside for gold, Jeffrey Halley, a senior market analyst, Asia Pacific at OANDA, believes “the elephant in the room is this Delta variant.” Therefore, “gold is likely to find more haven buying.” Moreover, the geopolitical tensions related to the collapse of the Afghan government could further boost the yellow metal’s safe-haven appeal.
Amid this environment, Wall Street analysts remain bullish about prominent gold mining stocks Sibanye Stillwater Limited (SBSW), Kinross Gold Corporation (KGC), and Eldorado Gold Corporation (EGO). These stocks are currently trading significantly below their 52-week highs. And given the expected increase in demand for safe-haven assets, analysts expect these stocks to rally by more than 45% in the near term.
