UBS Names Top Gold Mining Stocks Amid Market Volatility
UBS has identified six gold mining stocks that it believes will benefit from medium-term demand for gold, despite near-term headwinds. The investment bank notes that key drivers of the recent bull market in gold remain intact, including central bank accumulation, rising sovereign debt burdens, and de-dollarization.
The firm's top pick is Newmont Corp., which has seen its risk-reward profile improve following recent market adjustments. UBS also includes AngloGold Ashanti, Endeavour Mining, SSR Mining, Franco-Nevada Corporation, and Genesis among its top picks.
UBS acknowledges that the near-term outlook for gold mining stocks is uncertain, citing potential risks from a strong dollar and rising real yields. However, it believes that these headwinds will be temporary and that structural demand factors supporting gold will prevail in the medium term.