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Highlights:
- Citi analysts foresee continued bullish gold prices in 2025.
- Gold price forecast raised to $US2900 per ounce.
- Target prices increased for Genesis (ASX:GMD) and Evolution Mining (ASX:EVN).
Citi analysts have recently revised their expectations for the gold sector, signaling optimism about sustained high gold prices in 2025. With the potential for further market growth, the investment bank has upgraded its target prices for several ASX-listed gold miners.
The key driver behind these adjustments is Citi's upgraded forecast for gold prices. The bank now anticipates that gold will average $US2900 an ounce this year, up from a previous estimate of $US2790. This bullish outlook follows a remarkable 27% rally in gold prices during the previous year, culminating in a record high of $US2778 per ounce in October. Analysts believe that strong market demand, coupled with geopolitical tensions and inflation concerns, will continue to support the gold market in the upcoming months.
Among the ASX-listed gold stocks, Citi analysts have raised the target price for Evolution Mining (ASX:EVN), a major gold producer in Australia, from $5.80 to $6.00 per share. The company has demonstrated resilience, benefiting from high-grade assets and a robust production outlook. As a result, Evolution Mining is expected to continue its solid performance, further supported by the positive movement in gold prices.
Similarly, Genesis Minerals (ASX:GMD), a gold exploration and development company, has seen its target price increased from $3.20 to $3.40. Genesis is well-positioned with strong assets, including significant projects in Western Australia. However, Citi has downgraded the company to a "neutral" rating, reflecting a more cautious stance on its near-term growth potential despite the price target increase.
At the time of writing, Evolution Mining shares were trading at $5.94, while Genesis Minerals was priced at $3.20. These price movements suggest that investors are taking note of Citi's more positive outlook for the gold sector.
The combination of elevated gold prices and robust projections for the mining companies has led to revised target prices for key players like Evolution Mining and Genesis Minerals. While market conditions remain dynamic, these companies stand to benefit from a favorable gold market environment throughout the 2025 financial year.
