3 Gold Stocks to Buy as Bullion Shines in a Low-Rate Environment
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December 18, 2025 — 08:17 am EST Written by Abhinab Dasgupta for Zacks-> Gold prices have posted a solid performance in 2025, with the recent gold rally on Wall Street highlighting the metal’s renewed appeal as a store of value. After a volatile start to the year, gold gradually gained traction as investors reassessed monetary policy, economic growth prospects and geopolitical risks, pushing prices higher through much of the year.Gold has posted its biggest surge since the 1979 oil crisis, doubling over the past two years, a development that once would have signaled a sharp correction. Instead, expanding investor participation, U.S. policy shifts and the Ukraine war have prompted market participants to forecast that the metal would hit the $5000 mark in 2026. Spot prices hit a record $4,381 in October, fueled by strong central bank and investor demand. Currently, it is hovering around a similar territory.A key driver of gold’s strength has been shifting expectations around U.S. interest rates. As inflation showed signs of easing and growth indicators softened, markets increasingly anticipated that the Fed would further cut rates later in the year. Lower interest rates reduce the opportunity cost of holding gold, supporting demand even during periods when policy easing was delayed. In such an environment, Gold Fields Limited GFI, Agnico Eagle Mines Limited AEM and Kinross Gold Corporation KGC are three stocks that emerge as good investment options.Movements in the U.S. dollar have also influenced gold prices in 2025. Episodes of dollar weakness made gold more attractive to international buyers, while lingering concerns over fiscal deficits and debt levels in major economies encouraged investors to diversify into hard assets.Geopolitical uncertainty has further reinforced gold’s safe-haven status. Ongoing conflicts, trade tensions and political uncertainty across key regions kept risk sentiment fragile at various points during the year, prompting investors to seek protection in gold during market pullbacks.Another important pillar of support has been steady central bank buying. Several emerging-market central banks continued to increase gold reserves as part of broader diversification strategies, providing consistent demand that helped stabilize prices during corrections.Unlike stocks or bonds, gold does not generate income, and it pays no interest or dividends. Therefore, when interest rates are high, investors can earn better returns by holding fixed-income assets, making gold less appealing. Conversely, when rates fall, the opportunity cost of holding gold declines. With bond yields and savings returns offering less reward, investors are more willing to allocate money into non-yielding assets like gold, driving up demand and prices.The stocks below flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.Gold Fields is a gold mining company with operations spanning Chile, South Africa, Ghana, Canada, Australia and Peru. GFI’s expected earnings growth rate for the current year is 138.6%.
The Zacks Consensus Estimate for its current-year earnings has improved 12.9% over the past 60 days. GFI has a Zacks Rank #1 and a VGM Score of B.Agnico Eagle Mines is a global gold mining company engaged in the exploration, development and production of gold. AEM’s expected earnings growth rate for the current year is 83.9%.
The Zacks Consensus Estimate for its current-year earnings has improved 9.9% over the past 60 days. AEM has a Zacks Rank #1 and a VGM Score of B.Kinross Gold is a gold mining company focused on the exploration, development and production of gold from mines across the Americas and West Africa. KGC’s expected earnings growth rate for the current year is 147.1%.
The Zacks Consensus Estimate for its current-year earnings has improved 19.2% over the past 60 days. KGC has a Zacks Rank #1 and a VGM Score of A.In essence, gold thrives in a low-rate world. When borrowing costs fall, the appeal of holding cash or bonds diminishes, currencies often lose strength and investors look for stability amid uncertainty. These forces combine to make gold more attractive, reinforcing its enduring role as a store of value during times of monetary easing. Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportKinross Gold Corporation (KGC) : Free Stock Analysis ReportAgnico Eagle Mines Limited (AEM) : Free Stock Analysis ReportGold Fields Limited (GFI) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.