Gold Miners Benefit From Historic Bullion Rally Driven By Policy Shifts And Safe-Haven Demand

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. Image credit: Reuters/Hiba Kola

Gold rose about 64% in 2025, its steepest annual increase since 1979, fueled by US monetary policy easing, robust central bank buying and investor flows into ETFs as a hedge against global policy risks and macro uncertainty.

A low-interest-rate environment and economic uncertainty traditionally favour non-yielding assets such as gold.

"We now see gold reaching $6,000 per ounce by year-end, with the caveat that this is probably a conservative estimate and it could well go higher," said analysts at Societe Generale.

Bullion prices have set consecutive record peaks over the past week and have already risen more than 18% this year.

"As long as the dollar stays under pressure, central banks remain net buyers of gold, and governments continue flirting with FX intervention, it is difficult to see what really forces this market to roll over, aside from a wave of profit-taking," said Fawad Razaqzada, market analyst at City Index.

A higher gold price environment typically boosts miners' revenues and margins, strengthens cash flows and balance sheets, and gives companies more room to fund expansion, dividends or debt reduction.

Top miners Newmont and Barrick Mining rose 3% and 2.3%, respectively.

Canadian miners Agnico Eagle Mines rose 2.6%, and Kinross Gold gained nearly 4%.

Tracking the bullion rally, silver prices scaled a new high above $100 an ounce, building on their record 147% rise last year.

"We expect a period of 'stronger for longer' silver prices to persist in the near to medium term," said Scotiabank analysts.

Shares of Hecla Mining and Coeur Mining rose 4.8% and 2.7%, respectively.

Canada-based Endeavour Silver, Silvercorp Metals and Wheaton Precious Metals added between 4% and 6%.

In addition, ETFs abrdn Physical Silver Shares and iShares Silver Trust each jumped 11%.