Spot gold has just hit its highest level ever, and the stage looks set for the rally to spill over into next year. The yellow metal has done well through periods of uncertainty, wars, economic crises, and health scares for centuries, acting as a safe haven. Some of the best gold stocks for 2024 are the the SPDR Gold Shares ETF, Osisko Gold, Franco-Nevada, Barrick Gold, and Newmont Mining.
As expected, investors have rushed towards gold for safety this year. Gold prices have rallied over the past two months as the Israel-Hamas conflict took center stage. Additionally, a growing list of global concerns – such as the Russia-Ukraine conflict, tensions in the Middle East (involving Iran and Houthi rebels in Yemen), rising confrontations between China and its neighbors, inflation, interest rate woes, and the latest health scare from China – have kept investors on edge for a while now.
Further, expectations of a weaker U.S. dollar and easing interest rates should keep gold prices buoyant. The recent moves in the U.S. dollar index already point in this direction, and the next catalysts could be actions from global central banks and demand from China and India.
Nearly a quarter of all central banks plan to boost their gold reserves as the U.S. dollar weakens, according to CNBC. As lower rates weaken the U.S. dollar, the shiny metal becomes more affordable for international customers. China and India are the top two consumer markets for gold, and demand from India is expected to remain elevated as the country’s economy continues to do well.
For investors, there are multiple ways to gain exposure to gold. Investing via gold ETFs can be cost-effective, convenient, and offers easy liquidity. The SPDR Gold Shares ETF (NYSEARCA:GLD) is one of the first gold ETFs in the U.S., boasting an AUM of about $55 billion. This ETF has gained nearly 17% over the past year.
What Are the Best Gold Stocks to Buy Now?
Additionally, gold-focused stocks, such as mining, streaming, or royalty companies, can be a good option. Check out the TipRanks Comparison Tool to take a deeper dive into the gold stocks with high upside potential, going into 2024.
Osisko Gold (NYSE:OR) has jumped by nearly 96% over the past five years, and analysts still remain gung-ho about the stock with a Strong buy consensus rating. Franco-Nevada (NYSE:FNV) has put up a 63% price gain during this period and offers the highest upside potential of nearly 35% among the names on our list today. On the other hand, Barrick Gold (NYSE:GOLD) and Newmont Mining (NYSE:NEM) offer better dividend yields.
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