Gold miner shares jump as bullion prices hit $5,100/oz record high

By Pooja Menon

Jan 26 (Reuters) - Shares of gold miners jumped on Monday, as bullion prices surged to a record high of $5,100 an ounce, extending a historic rally driven by safe-haven demand amid geopolitical uncertainties and market volatility.

Gold rose about 64% in 2025, its steepest annual increase since 1979, fueled by U.S. monetary policy easing, robust central bank buying and investor flows into ETFs as a hedge against global policy risks and macro uncertainty. GOL/

A low-interest-rate environment and economic uncertainty traditionally favor non-yielding assets such as gold.

"We now see gold reaching $6,000 per ounce by year-end, with the caveat that this is probably a conservative estimate and it could well go higher," said analysts at Societe Generale.

Bullion prices have set consecutive record peaks over the past week and have already risen more than 18% this year.

"As long as the dollar stays under pressure, central banks remain net buyers of gold, and governments continue flirting with FX intervention, it is difficult to see what really forces this market to roll over, aside from a wave of profit-taking," said Fawad Razaqzada, market analyst at City Index.

A higher gold price environment typically boosts miners' revenues and margins, strengthens cash flows and balance sheets, and gives companies more room to fund expansion, dividends or debt reduction.

Top miners Newmont NEM.N rose 3% and Barrick Mining ABX.TO climbed 2.3%.

Canadian miners Agnico Eagle Mines AEM.TO rose 2.6% and Kinross Gold K.TO gained nearly 4%.

Tracking the bullion rally, silver prices scaled a new high above $100 an ounce on Friday, building on their record 147% rise last year.

"We expect a period of 'stronger for longer' silver prices to persist in the near to medium term," said Scotiabank analysts.

Shares of Hecla Mining HL.N and Coeur Mining CDE.N rose 4.8% and 2.7%, respectively.

Canada-based Endeavour Silver EDR.TO, Silvercorp Metals SVM.TO and Wheaton Precious Metals WPM.TO added between 4% and 6%.

In addition, ETFs abrdn Physical Silver Shares SIVR.P and iShares Silver Trust SLV.P each jumped 11%.