Citi Sees Opportunity in Gold Stocks as Bullion Price Target Hits $5,000

Citi's global commodity team has expressed optimism about large-cap gold equities, highlighting Newmont and Agnico Eagle Mines as top picks in the sector. According to Citi, gold prices are expected to reach $5,000 per ounce by the end of 2027.

The investment bank notes that gold equities currently trade at valuations implying gold prices roughly $500 per ounce below current spot levels. This valuation gap is seen as an opportunity for gold stocks to outperform during periods of stable prices.

Citi emphasizes that large-cap gold miners are demonstrating strong free cash flow yields at current spot prices, with cost inflation remaining under control even as gold prices have risen.