4 Gold Stocks to Buy as Inflation Continues to Rise

imageStock Markets21 minutes ago (Jul 02, 2021 05:30PM ET)

(C) Reuters. 4 Gold Stocks to Buy as Inflation Continues to Rise

The Federal Reserve expects inflation rates to rise further in the coming months due to an improving job market and concomitant increase in consumer spending. As a result, demand for gold as a safe-haven investment to hedge inflation risk is expected to climb. Therefore, we believe gold mining stocks Gold Fields (NYSE:GFI), Yamana (AUY), Alamos (AGI), and Centerra (CGAU) are well-positioned to deliver substantial returns in the near-term. Let’s discuss.Gold prices are expected to increase in the coming months as investors buy the safe-haven asset to hedge their portfolios against rising inflation. The Federal Reserve expects inflation to rise further in the coming months because the economy is recovering at a fast pace.

The Fed expects inflation to hit 3.4% in 2021. Furthermore, St. Louis Fed President James Bullard expects the inflation rates to rise in 2022 also, owing to pent-up demand and surging consumer spending.

To benefit from this growing demand, companies engaged in gold mining and exploration are trying to expand their mine operations and increase production by investing heavily in technology. Thus, we believe Gold Fields Limited (GFI), Yamana Gold Inc. (NYSE:AUY), Alamos Gold Inc . (NYSE:AGI), and Centerra Gold Inc. (CGAU) will deliver solid returns in the coming months.

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4 Gold Stocks to Buy as Inflation Continues to Rise

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