The price of gold and the SPDR® Gold Shares (NYSE:GLD) delivered exceptional returns in 2024, with GLD surging over 30%, outperforming the benchmark and broader market. This trend has continued in 2025, with GLD up nearly 3% year-to-date as of Friday’s close. With gold consolidating near record highs, the question arises: is this a good time to consider exposure for another year of potential outperformance?
Gold’s Ongoing Outperformance
Gold prices rallied on Thursday, reaching a one-month high after weaker-than-expected U.S. economic data drove Treasury yields lower. A soft core inflation reading strengthened expectations of a more dovish Federal Reserve, fueling demand for gold. Gold ended the week in positive territory despite pulling back slightly on Friday. GLD, a popular gold ETF offering exposure without physical commodity holding, is now consolidating in a bullish pattern, sitting just 3.27% below its 52-week high.
Given this setup, which suggests the potential for continued momentum, let’s examine some of the top names within the sector displaying relative strength and key considerations to be aware of before pulling the trigger.
SPDR Gold Shares ETF: A Direct Option
The SPDR Gold Shares ETF is a popular and direct choice for gold exposure, with a net expense ratio of 0.4%. Over the past year, GLD has gained 34%, and recent net inflows of 1.7% reflect increased investor interest.
Technically, GLD is consolidating above key SMAs, with $250 serving as a critical resistance level. A breakout above this level could signal a run toward its all-time high near $258.
GLD’s positioning and track record make it an appealing option for those seeking direct exposure to the commodity.
2 Gold Stocks Displaying Relative Strength
Agnico Eagle Mines (NYSE:AEM) explores and develops gold properties across Canada, Australia, Finland, Mexico, and more. AEM has a market cap of $42.7 billion and a 1.88% dividend yield.
The stock has delivered a stellar return to its shareholders, surging over 70% in the past year and nearly 9% year-to-date. From a technical perspective, the stock's chart is exceptionally bullish, and finding a more attractive chart within the sector has proven challenging. Over the last three months, it has consolidated within a tightening range near its 52-week high, with $86 serving as a key resistance level and potential breakout point.
The stock's technical setup and relative strength position it favorably for further upside momentum, particularly if gold prices continue their upward trajectory. Analysts remain optimistic, assigning the stock a consensus Moderate Buy rating and a price target suggesting nearly 5% additional upside potential.
Kinross Gold Corp (NYSE:KGC) operates in the U.S., Brazil, Chile, and beyond. The company has a market cap of $12.6 billion, a 1.16% dividend yield, and a P/E ratio of 16.89.
KGC stands out among its larger peers due to its remarkable performance. Year-to-date, the stock has risen over 11% and has soared nearly 90% over the past year. By Friday’s close, KGC was trading above all its key simple moving averages (SMAs) and is now just 4.7% away from its 52-week high, a critical breakout level.
The company's financial performance has also been impressive. In its Q3 2024 earnings report, released on November 5, KGC posted an EPS of $0.24, beating analysts’ consensus estimate of $0.19 by $0.05. Revenue for the quarter surged 29.9% year-over-year, reaching $1.43 billion, which also exceeded expectations of $1.32 billion. Despite being covered by only three analysts, KGC holds a Moderate Buy rating and a consensus price target projecting nearly 8% upside potential.
With its bullish technical setup, strong earnings growth, and favorable analyst sentiment, Kinross Gold continues to be a compelling option for investors seeking exposure to the gold sector.
Key Considerations for Gold Investments
Various factors drive gold's performance, including economic stability, inflation, the strength of the US dollar, and geopolitical tensions. During periods of uncertainty, gold's appeal as a safe haven increases. Additionally, central bank purchases and interest rate movements significantly influence the sector.
Investors in the sector need to stay attuned to these dynamics. With gold prices showing resilience and GLD consolidating near highs, the sector continues to offer opportunities for both momentum traders and long-term investors. However, careful consideration of macroeconomic trends is essential to navigating this complex market effectively.
As gold consolidates and digests its recent record gains, the combination of ETFs like GLD and outperforming stocks like AEM and KGC offers multiple pathways for investors seeking exposure to this historically defensive asset class.