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We recently published a list of 6 Most Profitable Gold Stocks To Buy Now. In this article, we are going to look at where Fortuna Mining Corp. (NYSE:FSM) stands against other most profitable gold stocks to buy now.
Gold futures experienced a significant uptick on December 10, marking the highest close in more than two weeks. This movement was primarily driven by China’s central bank, the People’s Bank of China (PBOC), which resumed gold purchases for the first time in six months, alongside the Chinese government’s commitment to implementing a “moderately loose” monetary policy and a more proactive fiscal stance in the coming year. ETFs tracking as gold, such as the SPDR Gold Trust (GLD), VanEck Vectors Gold Miners ETF (GDX), VanEck Vectors Junior Gold Miners ETF (GDXJ), iShares Gold Trust (IAU), and iShares Silver Trust (SLV), among others, have also seen increased activity in response to the market movements.
The PBOC’s acquisition of approximately five metric tons of gold in November, which is modest compared to previous purchases that sometimes reached 30 tons per month, was a critical factor in the recent gold rally. Analysts at Commerzbank noted that the resumption of gold buying by the PBOC could be a strategic response to the election of Donald Trump, who has threatened to impose tariffs on China. Additionally, the recent dip in gold prices after a series of record highs may have sparked renewed interest in the precious metal. For gold prices to maintain and potentially extend their gains, it is essential that central bank purchases continue in the coming months, Commerzbank analysts emphasized. Another factor supporting the rise in gold prices is the growing expectation among traders that the Federal Reserve will cut U.S. interest rates at its upcoming meeting. According to ActivTrades analyst Ricardo Evangelista, a rate cut would enhance the appeal of non-interest-bearing assets such as gold.
Gold’s Bull Market Expected to Continue
In an interview with CNBC on December 10, Max Layton, Global Head of Commodities Research at Citi, discussed the impressive performance of gold in the current year and its potential outlook for 2025. Layton noted that this year has been exceptionally strong for gold, with a significant bull market that can be observed over a 50-year chart. He expressed confidence that this trend is likely to continue, citing several key factors.
Citi’s analysts have introduced a fundamental physical flows-based framework for gold pricing, which provides insight into the underlying drivers of the bull market. These drivers include substantial investment from central banks and wealthy over-the-counter (OTC) investors, as well as broader investor concerns about high interest rates and high debt levels in the United States. Additionally, investors are using gold as a hedge against the potential medium-term impact of a U.S. economic slowdown, which has been ongoing for the past two and a half years. The labor market has also been slowing down during this period, and real interest rates remain at 15-year highs, further fueling these concerns. Layton emphasized that as long as these economic issues persist, there will be continued investment in gold as a hedge.