Gold Sector Sees Correction, But Long-Term Outlook Remains Bullish
The gold sector has seen a month-long sell-off, but experts say it's still a bullish market in the long term. Despite the Australian gold sub-index being down nearly 19% since January 2026, many are optimistic about the future of gold.
Gold stocks have lost some of their shine this year, with prices fluctuating due to concerns over inflation and interest rate hikes. However, experts point out that margins remain strong, and volatility has created opportunities for investors to buy undervalued gold equities.
CANACORD Genuity senior resource analyst Paul Howard said, 'I think longer term we're still pretty happy where it's going.' He noted that the sector is experiencing a correction after being driven to fever pitch by aggressive buying from reserve banks and generalist funds.