Gold Miners' Shares Rise on Central Bank Buying and ETF Demand.

Gold miners' shares rise due to central bank buying and ETF demand. Newmont Corporation, a leading gold mine exploration and operation company, has seen an increase in net sales, with gold sales accounting for 89.7%. The company operates in various regions, including North America, Australia, South America, Africa, and New Guinea. Net sales are distributed geographically across several countries, with the majority coming from the UK, South Korea, Switzerland, Japan, the Philippines, Australia, Germany, Mexico, and other regions.

Gold mining stocks experienced a surge in share prices on Tuesday, September 1, 2025, as gold futures traded at an all-time high. The court ruling against President Donald Trump's "reciprocal" tariffs and the expectation of a Federal Reserve interest rate cut contributed to this increase in gold prices, driving investors to seek safe-haven assets [1].

The Federal Reserve's anticipated interest rate cut, indicated by an 89.7% probability according to the CME FedWatch Tool, has bolstered gold prices [1]. This dovish policy shift has led to increased demand for gold as investors seek to hedge against potential economic downturns. The gold price has risen by approximately one-third since the beginning of the year [1].

Shares of gold miners such as Newmont Corporation (NEM) and Barrick Mining (B) advanced significantly on Tuesday. Newmont, a leading gold mining company with operations in various regions including North America, Australia, South America, Africa, and New Guinea, saw an increase in net sales, with gold sales accounting for 89.7% of its total revenue [2]. The company's geographical distribution of net sales includes significant contributions from the UK, South Korea, Switzerland, Japan, the Philippines, Australia, Germany, Mexico, and other regions [2].

Barrick Mining Corporation also reported a 3% sequential growth in second-quarter 2025 gold sales volumes, reaching 770,000 ounces, after a decline in the prior quarter [3]. This growth resulted in an 18% sequential increase in the top line and a 71% rise in net earnings, demonstrating the company's ability to leverage higher gold prices [3]. Barrick's shares have gained 71.8% year to date, outperforming the Zacks Mining – Gold industry's rise of 85.5% [3].

The geopolitical tensions and central bank demand have further driven the gold price to $3,388 per ounce, with BRICS nations leading de-dollarization efforts [2]. Central banks added 710 tons of gold to their reserves in 2025, signaling a strategic shift towards de-dollarization while maintaining U.S. dollar dominance [2]. This trend has accelerated due to conflicts in the Middle East and U.S.-China trade disputes, pushing central banks to add gold to their reserves [2].

Gold mining equities have outperformed physical gold by 25% in 2025, reflecting their ability to capitalize on elevated prices and operational efficiencies [2]. Companies like SSR Mining, with a P/E ratio of 21.0 and a 10% free cash flow yield, offer compelling value [2]. J.P. Morgan forecasts gold prices to reach $4,000 per ounce by mid-2026, driven by a weak dollar and structural demand [2].

Investors are advised to allocate 5–10% to gold ETFs and mining equities to hedge against trade war volatility and stagflation risks [2]. Gold miners with robust balance sheets and diversified production, such as Agnico Eagle (AEM), are particularly well-positioned [2].

In conclusion, the surge in gold mining stocks is driven by a combination of central bank buying, ETF demand, and geopolitical tensions. As the Federal Reserve's dovish policy continues to support gold prices, investors can expect gold mining equities to remain a compelling hedge in a volatile macroeconomic landscape.

References:
[1] https://finance.yahoo.com/news/gold-mining-stocks-gain-precious-135324209.html
[2] https://www.ainvest.com/news/trump-tariff-uncertainty-strategic-resilience-gold-miners-2509/
[3] https://finance.yahoo.com/news/barrick-minings-gold-sales-volumes-122100584.html