Eldorado Gold (EGO) stock soared 5.51% in pre-market trading on Monday, riding the wave of a broader rally in gold stocks. The surge comes as spot gold prices extended gains, rising nearly 2% to $3,305 per ounce, driven by a weaker dollar.
The precious metals sector saw significant movement, with other major players also posting strong gains. Gold Fields and Harmony Gold were up 5%, while Coeur Mining and Kinross Gold rose 3%. Industry giant Barrick Gold also saw a 2% increase in pre-market trading.
Adding fuel to the gold rally, Goldman Sachs reiterated its bullish stance on gold. The investment bank maintained its structural positive view, forecasting gold prices to reach $3,700 per ounce by year-end and $4,000 by mid-2026. In more extreme scenarios, Goldman Sachs analysts suggested that gold could potentially trade near $4,500 per ounce by the end of 2025, particularly if market concerns grow regarding Federal Reserve policy changes or shifts in U.S. reserve policy.
As gold miners' profitability is closely tied to gold prices, the positive outlook for the precious metal is likely driving investor enthusiasm for companies like Eldorado Gold. The company, along with its peers, stands to benefit from the continued strength in gold prices, which could potentially translate to improved earnings and cash flow in the coming quarters.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.