All That Glitters: Why Gold Equities May Continue To Outperform Energy Stocks
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TD Wealth5.08K FollowersFollow5ShareSaveCommentsSummaryAbundant oil supplies may weigh on energy stocks in 2026.Fundamentals for gold equities continue to look good.Concerns about U.S. debt and deficit may support gold rally. FeelPic/iStock via Getty Images Gold miners have widely outperformed oil and gas stocks in 2025. Andriy Yastreb, Vice President for Portfolio Research with TD Asset Management, says the current outlook for commodity prices and ongoing economic uncertainties could continue that trend inThis article was written byTD Wealth5.08K FollowersFollowTD Wealth is an integral part of the TD Bank Group, which has approximately 24 million customers worldwide, 85,000 employees and CDN $1 trillion in assets on April 30, 2015. In Canada, TD Wealth services customers through: · TD Direct Investing which provides clients access to the information, tools and support that empower them to invest for themselves with confidence. · TD Wealth Private Client Group, which provides discretionary wealth management for high net worth clients and businesses. · TD Wealth Private Investment Advice provides full service brokerage for investors who want a high level of tailored advice and solutions. · TD Wealth Financial Planning develops and implements a financial plan for individual clients. At TD Wealth, whether you invest yourself or benefit from the knowledge provided by your advisor, you gain access to some of the industry's most highly regarded investment analysts, economists and market strategists.Quick InsightsWhat explains the divergence between energy equities and oil prices in 2025?Energy stocks have outperformed despite declining oil prices due to stronger balance sheets, reduced debt, free cash flow generation, and buybacks, but oversupply and inventory build suggest downside risk remains.How do gold miners' free cash flow yields compare to energy stocks, and what is the outlook?Gold miners' free cash flow yields have risen to 7.5%, matching energy stocks, with consensus expecting a further 50% increase in free cash flow over the next six months as gold prices remain strong.What macro factors are supporting continued strength in gold and gold miners?Persistent concerns over US sovereign risk, high debt-to-GDP, and budget deficits are driving investors toward gold as a safe haven, reinforcing the bullish thesis for gold miners into 2026.Recommended For You