Newmont: The world’s largest gold producer significantly benefited in the first quarter of 2023 from the increase in gold prices, which reached an average of 2,944 USD/ounce. This represents a significant increase compared to 2022, when the average gold price was around 1,790 USD/ounce.
Background and Market Conditions
The gold price has been continuously rising in recent years, influenced by macroeconomic uncertainties, geopolitical tensions, and central bank policies. Despite rising interest rates in 2023, which theoretically could have pressured the gold price, the market saw an increase of about 15%. This improves the earnings outlook for companies like Newmont.
Newmont’s Position and Forecasts
Newmont is strengthening its market position not only through rising gold prices but also through investments in new projects and strategic partnerships. A joint venture in Papua New Guinea has the potential to generate long-term profits once the necessary permits are obtained. Analysts from UBS recently upgraded Newmont’s stock and speak of stable return prospects.
Gold Market Forecasts until the End of 2025
The outlook for the gold market remains promising. Experts forecast further increases, driven by increased buying activity from central banks and geopolitical developments. Predictions from Goldman Sachs estimate a gold price of up to 3,700 USD per ounce by the end of 2025, with possible peaks up to 4,000 USD.
Investment Strategies
For investors looking to invest in commodities, Newmont is considered a worthwhile option. The company benefits not only from high gold prices but is also strategically well positioned. Gold stocks like New Gold Inc. are also showing a recovery from long-term lows and offer positive price targets.
Thus, due to the current market conditions and forecasts, the gold market offers interesting investment opportunities for investors in the commodity segment.