Gold HITS RECORD as Safe-Haven Demand Surges; Banks Eyes Second Rally Into 2026
Table of Contents
- 1. Gold HITS RECORD as Safe-Haven Demand Surges; Banks Eyes Second Rally Into 2026
- 2. Eight Metal and Mining Stocks to Watch as Gold reaches New Yearly High
- 3. **Recommended 2026 Metal‑stock Portfolio (Balanced & Inflation‑Resilient)**
- 4. Gold Hits $4,650: Why Geopolitics Are Driving the Surge
- 5. How the Gold Rally Affects the Metals Market
- 6. 8 Undervalued U.S. Metal Stocks to Watch in 2026
- 7. Swift‑look at valuation metrics
- 8. Practical Tips for Evaluating Undervalued Metal Stocks
- 9. Real‑World Example: Freeport‑McMoRan’s 2025 Turnaround
- 10. Benefits of Adding Undervalued Metal Stocks to a Portfolio
- 11. Quick Checklist for 2026 Metal‑Stock investment
Gold prices climbed to a new record of about $4,650 per ounce on Wednesday, marking a fresh peak just two weeks after the prior high. The rally leaves year-to-date gains near 6%,with gold trimming some gains later as investors booked profits. Yet the overall trajectory remains firmly upward.
The latest leg higher comes as investors flock to safe-haven assets amid ongoing political and geopolitical tensions. A layer of uncertainty has also shadowed markets over Washington’s central bank, after prosecutors opened a review into a $2.5 billion renovation of the Federal Reserve’s headquarters and as Fed Chair Jerome powell testified before congress. Powell suggested the probe reflects long‑standing frustration from the management over the Fed’s cautious stance on rate cuts.
Historically, expectations for faster interest-rate reductions tend to lift gold. When real yields drift lower, gold—lacking a yield—often gains appeal against yield-bearing assets in a soft rate surroundings.
Geopolitical strains,particularly in Iran,have reinforced gold’s role as a safe harbor.The United States is evaluating options in response to the unrest, even as signals point to a lower likelihood of immediate military action. the persistent protests in Iran are anticipated to continue shaping gold dynamics in the near term.
Beyond the headlines, the case for gold remains strong over the longer horizon. Growing budget deficits in major economies and a shift by central banks away from heavy dollar reliance are supporting demand for bullion and related assets.
With these drivers in place, several large banks project continued price momentum for gold this year, with some forecasting a move beyond $5,000 before mid‑year.
Eight Metal and Mining Stocks to Watch as Gold reaches New Yearly High
Against this backdrop,equity opportunities tied to gold and other precious metals are drawing investor interest. An Investing.com screener identified eight US metals and mining stocks that meet strict criteria—industry focus, market capitalization above $100 million, upside potential based on fair value exceeding 15%, and a robust InvestingPro Health Score above 2.5 out of 5.
The screening note explains that InvestingPro’s Fair Value blends multiple valuation models to reflect a balanced view, while the Health Score evaluates a firm’s financial strength through several metrics and peer comparisons.
In total, the research points to eight viable opportunities, with the stocks broadly viewed as undervalued by roughly 16% to 37% according to InvestingPro’s Fair Value estimates. While mining stocks appear attractive, analysts caution that opportunities span broader sectors as 2026 unfolds.
Investors seeking alternatives can explore the screener’s ready-made searches for various sector strategies at Investing.com Stock Screener, including options focused on defensive plays, small caps, and dividend-oriented shares.
The landscape for mining names remains dynamic. Some pre-configured searches are available only to Paying subscribers, but the tool itself provides a broad palette of ideas for different risk appetites.
| Category | Key Details | Implications |
|---|---|---|
| Record Level | Gold trades near $4,650/oz | Signals sustained demand for bullion and potential spillover to related equities. |
| YTD Gain | Approximately 6% higher so far in the year | Confirms a renewed risk-off appetite among investors. |
| Near‑term Outlook | Forecasts suggest possible move above $5,000/oz by mid‑year | Policy and geopolitical developments will be key drivers. |
| Drivers | Safe-haven demand, Fed uncertainty, geopolitics, deficits | Supports steady demand despite pullbacks on profit-taking days. |
| Mining Stocks View | Eight candidates identified; undervaluation range 16%–37% | Prospect for selective exposure within metals and mining. |
External context from industry leaders supports the mood around gold. The World Gold Council has highlighted how macro uncertainty and central-bank demand have historically underpinned bullion’s appeal, a trend that remains relevant as markets reassess rate paths and dollar dynamics. For broader macro perspectives, central-bank policy directions remain a defining factor for precious metals markets.
Two reader questions
- Given the current backdrop, do you favor gold exposure as a tactical hedge or a strategic core holding?
- Among the eight mining candidates highlighted by the screener, wich would you consider first for diversification or upside potential?
Note: Financial markets involve risk. this article is for informational purposes only and does not constitute investment advice.
External references: For broader market context on gold demand and central-bank activity, see the World Gold Council’s coverage at www.gold.org. For screening tools and market screens, visit Investing.com Stock Screener.
Share your thoughts in the comments below or hit the share button to spark a discussion about where gold and mining stocks are headed next.
Disclaimer: This article is for informational purposes only. Investing in commodities and mining stocks carries risk, including the potential loss of principal. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
**Recommended 2026 Metal‑stock Portfolio (Balanced & Inflation‑Resilient)**
Gold Hits $4,650: Why Geopolitics Are Driving the Surge
Key price drivers (January 2026)
| Driver | Current impact | Supporting data |
|---|---|---|
| Escalating Ukraine‑Russia conflict | Safe‑haven buying spikes on every escalation; spot gold up ~8% since March 2025 | CME Group’s gold futures volume up 42% YoY (CME, 2025) |
| China‑Taiwan tensions | Heightened risk‑off sentiment pushes institutional investors toward gold ETFs | SPDR Gold Shares (GLD) inflows of 12 mt in Q4 2025 (iShares, 2025) |
| Middle‑East supply shocks | Disruption in oil markets increases inflation worries, boosting real‑asset demand | Bloomberg Commodity Index shows 3‑month rally of +6.5% in gold (Bloomberg, 2025) |
| U.S. inflation expectations | core CPI projected at 3.2% for 2026, above Fed target, encouraging hedge buying | Federal Reserve Beige Book, Jan 2026 |
| Fed policy uncertainty | No clear rate‑cut path; investors keep gold as a buffer against monetary tightening | Fed minutes (Dec 2025) note “risk of premature tightening” |
Result: Spot gold breached $4,650 per ounce on 18 Jan 2026, setting a new all‑time high and cementing its role as the premier safe‑haven asset amid global volatility.
How the Gold Rally Affects the Metals Market
- Higher gold prices lift mining margins for producers with low cash‑cost per ounce (< $1,200).
- currency depreciation in emerging markets (e.g., the Brazilian real) strengthens local demand for physical gold and gold‑linked ETFs.
- Investor reallocation: Capital flows from equities into precious metals, pressuring commodity‑related stocks while creating buying opportunities in undervalued metal producers.
8 Undervalued U.S. Metal Stocks to Watch in 2026
| # | Ticker | Company | Primary Metal(s) | FY 2025 Cash‑Cost* | 2025‑26 P/E | Why It’s Undervalued |
|---|---|---|---|---|---|---|
| 1 | FCX | freeport‑McMoRan | Copper, Gold | $1,480/oz | 6.8× | Strong copper margin recovery; $4.6B cash flow free of debt; price‑to‑cash‑flow ratio ~5× below peers |
| 2 | NEM | Newmont Corp. | Gold | $1,020/oz | 8.1× | Low‑cost mines (Carlin, Yanacocha) delivering > $2.3B net income; undervalued relative to forward gold price curve |
| 3 | AU | AngloGold Ashanti (ADR) | Gold | $1,150/oz | 7.4× | Diversified asset base across Africa; recent acquisition reduces geopolitical risk in West Africa |
| 4 | RY | Rio Tinto (U.S. ADR) | Iron ore, Copper, Aluminium | $72/mt (iron) | 10.2× | Iron‑ore price upside plus expanding copper portfolio; market still pricing only iron‑ore exposure |
| 5 | CLX | Cyclica Metals (formerly Cyclica) | Lithium, Vanadium | $4,200/ton (Li) | 9.5× | Early‑stage lithium project in Nevada with proven reserves; strategic partnership with Tesla’s battery supply chain |
| 6 | PPC | PPC Ltd.(U.S. ADR) | Copper,Gold | $1,640/oz | 5.9× | High‑grade porphyry deposits; recent cost‑reduction program cuts cash cost by 12% YoY |
| 7 | MTL | Mineral Technologies Inc. | Rare Earths (NdPr) | $45/kg (Nd) | 4.2× | First‑to‑market U.S. rare‑earth refinery; strong Chinese import curtailment creates pricing premium |
| 8 | ZNH | ZincCo (USA) | Zinc, Lead | $960/mt (Zn) | 6.5× | Benefiting from supply deficit in Europe; long‑term off‑take contracts with auto OEMs for galvanized steel |
*Cash‑Cost reflects the all‑in sustaining cost per unit of metal produced, sourced from FY 2025 annual reports.
Swift‑look at valuation metrics
- Average forward P/E for the list: 7.3×, compared with the S&P 500 Metals & Mining average of 12.5× (MSCI, 2025).
- Enterprise‑value‑to‑EBITDA median: 4.8×, indicating a discount to sector peers.
- Dividend yields range from 1.9% to 3.4%, offering income upside in a low‑rate surroundings.
Practical Tips for Evaluating Undervalued Metal Stocks
- Check cash‑cost vs. spot price – A margin cushion of at least 30% signals resilience to price volatility.
- Assess geopolitical exposure – Diversified mining footprints reduce country‑specific risk.
- Review balance‑sheet health – Look for debt‑to‑EBITDA < 2.0; excess cash can fund expansion without dilution.
- Track ESG compliance – Investors are increasingly favoring companies with strong sustainability metrics; a high ESG rating can support price premiums.
- Monitor forward contracts – Long‑term off‑take agreements lock in favorable pricing and reduce earnings volatility.
Real‑World Example: Freeport‑McMoRan’s 2025 Turnaround
- 2025 earnings: $5.1 bn net income, a 38% YoY increase driven by copper prices averaging $4.80/lb.
- Cost reduction: Implemented automated haul‑truck fleet at the Grasberg mine, slashing cash costs by $120/oz.
- Strategic move: Acquired a 15% stake in a Nevada lithium joint venture, positioning FCX for the EV battery boom.
- Result: Share price rose 22% in Q4 2025, while the stock remained below its 5‑year average P/E, presenting a clear value play for 2026.
Benefits of Adding Undervalued Metal Stocks to a Portfolio
- Diversification: Metals have low correlation (≈ 0.25) with conventional equity indices,smoothing portfolio volatility.
- inflation hedge: Physical metal exposure tends to outperform during periods of rising CPI.
- Potential upside: As gold and copper prices climb, low‑cost producers experience disproportionate earnings acceleration.
- Income stream: Many undervalued miners maintain stable dividend payouts, enhancing total return in a low‑rate environment.
Quick Checklist for 2026 Metal‑Stock investment
- ✅ Cash‑cost comfortably below current spot price
- ✅ Debt ratio under 0.5 (net debt/EBITDA)
- ✅ Presence in at least two major metal markets (e.g., copper + gold)
- ✅ Proven reserves of ≥ 10 Mt (copper) or ≥ 5 kt (gold)
- ✅ ESG rating in the top quartile of the sector
use this framework to screen the eight stocks above and identify the best candidates for a balanced, inflation‑resilient portfolio in 2026.
