Citi Sees $5,000 Gold Target By Late 2027, Backs Newmont & Agnico

Citi's global commodity team has expressed optimism about large-cap gold equities, particularly Newmont and Agnico Eagle Mines. Analysts highlighted that gold prices are expected to reach $5,000 per ounce by the end of 2027.

The investment bank noted that current valuations imply a price roughly $500 below spot levels, creating an opportunity for gold stocks to outperform during stable price periods. Citi emphasized that large-cap miners demonstrate strong free cash flow yields at current prices, with cost inflation under control despite rising gold prices.

Newmont offers a free cash flow yield exceeding 6% at current spot gold prices, positioning it as an attractive option for investors seeking both exposure to gold prices and income generation. Agnico Eagle Mines carries a slightly lower free cash flow yield compared to Newmont but is still viewed positively by Citi due to its ability to benefit from the current gold price environment.