Gold has had disappointing and unexpected performances since the start of the war in the Middle East. Stocks in the metals and mining sector suffered significantly. Is this a buying opportunity, given that the structural bullish factors for gold remain intact?
After briefly rising above $5,400 at the start of the Middle East conflict, it has fallen and is now struggling to stay above the key $5,000 level as the conflict enters its third week.
This is unusual because gold is generally considered a safe place to invest in times of crisis. When there are geopolitical tensions or market uncertainty, investors usually buy gold to protect their money.
The current decline suggests something different is happening. As global stock markets fall sharply, investors are selling gold to raise cash and cover their losses elsewhere.
The rising US dollar is also adding pressure. The price crossed the 100 mark last week for the first time since November 25, making gold more expensive for buyers using other currencies.
As a result, gold stocks and other metals-related investments have also been affected.
Despite this, the overall situation remains favorable. Central banks continue to buy gold to diversify their reserves, and concerns about inflation remain high.
This weakness in gold could be seen as a buying opportunity, both for the metal and for stocks in the mining and metals sector.
This view becomes stronger when looking at the charts, where the $5,000 level currently serves as support.
10 metals and mining stocks with up to +83% RRebound potential
We therefore sought to identify stocks in this sector which have suffered greatly in recent weeks but which could experience substantial rebounds if gold resumes its upward trend.
To do this, we turned to the Investing.com screener to perform the following research:
Metals and mining sector A drop of more than 15% over two weeks Market capitalization above $250 million Upside potential of more than 30% according to analysts InvestingPro Health Score above 2.5/5
This research highlights 10 opportunities:
More precisely, these metallurgical and mining stocks, which have…
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