Rising gold prices mean that miners of the precious metal are likely to be among the standout performers on Monday when markets open in the U.S.
Shares in the world's largest gold producer Barrick Gold (ABX) shares traded at $10.16, up $0.55, or 2.8% in the pre-market, as did Newmont Mining (NEM) rose to $36.77, up $0.98, or 2.7%. South Africa's AngloGold Ashanti (AU) climbed to $16.82, up $0.16, or just under 1%, and London-listed Petropavlovsk (PPLKF) traded at 8.2 pence ($11.60), up 0.18 pence, or 2.2%.
Gold miners are benefiting from years of cost cutting, following a sharp decline in gold prices since 2012, which has left them profitable at lower gold prices and in particularly good shape to benefit from any increase in the gold price."Headlined by non-core asset divestiture, the majority of gold miners are building a solid track record of disciplined capital allocation," Goldman Sachs analysts wrote last week in a note on Barrick. Goldman has a price target of $23 per share for Barrick, which it believes is the pick of the gold mining companies as it has "the best portfolio of both Brownfield and Greenfield project" and could benefit from further asset sales over the next six months.