Gold stocks’ surge no reason for buying frenzy, analysts warn

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The bullion’s price is volatile and the benefits of the global risk premium could evaporate quickly

As investors watch the escalation of conflict closely in the Russian invasion of Ukraine, gold stocks may seem attractive given the recent surge in the gold price. However, analysts advise proceeding with caution.

Gold has long been seen as one of the safest assets in times of uncertainty while also acting as a hedge against inflation. Gold companies are cash flush and have been paying dividends as they benefited from the opening up of economies after the Covid-19 pandemic, inflation worries and heightened geopolitical tensions in Europe. ..

 

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