Demand for gold rose in recent years due to its status as a safe-haven asset amid geopolitical tensions. Demand also increased on the back of central bank purchases, interest rate cuts and is seen as a hedge against inflation.
Lim & Tan Securities analyst Chan En Jie has initiated a “buy” call on CNMC Goldmine as he sees several upsides for the company on the back of higher gold prices.
“As a gold-mining company selling at the spot rate, CNMC is a direct beneficiary of rising prices for the precious metal,” Chan points out. As at his report, average gold prices have risen from US$1,960 per ounce in 2023 to US$2,266 per ounce in the first half of 2024 and closing at US$2,624 per ounce at the end of the year. As at Feb 6, gold is trading at around the US$2,860 mark per ounce.
