What Could Keep Gold Shining?
Notwithstanding the recent pullback, gold still has room for further upside since the clouds of uncertainty continue to hover over the horizon. There is still a lot of risk in the market that are expected to support prices of the metal in the coming days. Concerns about global economic growth and lingering economic and political uncertainties are likely to act in favor of gold in the fourth quarter of 2016.
Moreover, prices of the metal should find support from physical demand from top consumers India and China during the festive season later this year. India will be a major driver with pent up demand having intensified due to the shutdown of jewelry stores earlier this year.
Another factor that will eventually be a tailwind for gold is the supply of the precious metal having already attained peak levels as per reports. Global production of gold is likely to decline by 3% in 2016, thus ending a seven-year stint of rising output. Lower mined outputs forming the gold supply could help prices move north.
Top Gold Stocks to Buy Now
As the scenario for bullion remains favorable, it would be a prudent idea to invest in some top-quality gold mining stocks that boast solid growth prospects and a good Zacks rank. These stocks have also delivered healthy year-to-date returns. Below we highlight 5 top gold stocks that are poised for a good run in the final quarter of the year.
New Gold, Inc. NGD
Vancouver, Canada-based New Gold is engaged in the acquisition, exploration, development, and operation of mineral properties. It primarily explores for gold, silver and copper deposits.
New Gold carries a Zacks Rank #1 (Strong Buy) and has seen its shares jump roughly 87.5% year to date. The company has expected earnings growth of around 491.7% for the current year. The Zacks Consensus Estimate for 2016 has moved up 60% over the last 30 days.
AngloGold Ashanti Ltd. AU
Headquartered in Johannesburg, South Africa, AngloGold Ashanti operates as a gold mining and exploration company.
AngloGold Ashanti sports a Zacks Rank #2 (Buy) and has gained roughly 124.2% year to date. The Zacks Consensus Estimate for 2016 has moved up around 19% over the last 30 days. The stock has expected earnings growth of 440% for the current year.
Gold Fields Ltd. GFI
South Africa-based Gold Fields is an unhedged, globally diversified producer of gold with eight operating mines in Australia, Ghana, Peru and South Africa. The stock carries a Zacks Rank #2 and has gained roughly 76.8% year to date. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2016 has moved up around 14% over the last 30 days. The stock has an expected earnings growth of a whopping 600% for the current year.
IAMGOLD Corp. IAG
Toronto-based IAMGOLD is engaged in the exploration, development and operation of gold mining properties. It also explores for copper and silver. The company holds interests in four operating gold mines, as well as exploration and development projects located in Africa, South America and Canada.
IAMGOLD, a Zacks Rank #2 stock, has gained roughly 185.2% year to date. The company has expected earnings growth of roughly 111.6% for the current year.
Acacia Mining plc ABGLF
Acacia Mining, together with its subsidiaries, mines, processes, and sells gold in Africa. The company also produces co-products, such as copper and silver.
The stock, which carries a Zacks Rank #2, has surged around 135.8% year to date. The Zacks Consensus Estimate for 2016 is 32 cents, a significant improvement from 2 cents in the prior year. The Zacks Consensus Estimate for the current year has moved up around 23% over the last 30 days.
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