The price of gold has gone into overdrive, rocketing 55% in just one year. But Goldman Sachs sees it topping almost $5,000 per ounce by the end of 2026 due to rising gold ETF demand and central bank purchases of the metal.
With the price at $4,140 today, this forecast suggests more gains could be ahead. Here are two gold stocks that should continue doing well if the yellow metal surges to $5,000. Both are worthy of attention.
FTSE 100
Let’s start with the highest-profile, which is Mexico’s Fresnillo (LSE:FRES). Incredibly, this FTSE 100 stock has gained more than 300% in 2025 alone!
Fresnillo is one of Latin America’s largest gold miners. In the first half of 2025, it produced 313,800 ounces of gold, and expects that figure to be as high as 590,000 for the full year.
The miner’s efficiency drive is really paying off. At its key Herradura gold operation, the ‘all-in sustaining cost’ (AISC) was $1,372 per ounce in the first half, down from $1,915 a year earlier. So if gold hits $5,000, Fresnillo’s profits should continue soaring.
However, Fresnillo is also the world’s leading silver producer. In the first half of 2025, it churned out 24.9m ounces of it.
According to its recent Mining Forum Americas 2025 presentation, its group-wide AISC for silver is around $17.50. As I type, silver is above $52, roughly 66% higher than a year ago. This is incredible for Fresnillo.
After its stunning rally, the stock isn’t cheap at 23 times forward earnings. However, I don’t think the valuation is bonkers given the various trends underpinning gold’s rise, including sticky inflation, record central bank buying, mounting government debt, and geopolitical unease.
The forecast dividend yield is 2.8%, while the probability of special dividends is high (though not guranteed, of course).
AIM stock
The second option is AIM-listed Pan African Resources (LSE: PAF). Shares of this pureplay gold miner are up 167% year to date and 350% over five years!
Pan African operates mines in South Africa and Australia, producing roughly 200,000 ounces a year. With a five-year return on invested capital (ROIC) of 49%, it’s among the most profitable mid-tier gold miners around.
Pan African’s AISC was $1,600 in FY25, but this is expected to ease to between $1,525 and $1,575 this year (FY26). Management sees output climbing more than 40% as new operations ramp up.
The miner’s valuation looks attractive here. The forward earnings multiple is just 7.7, while the yield climbs to 3.5% by next year.
Foolish takeaway
Of course, a sharp correction in the gold price would negatively impact future profitability at both Fresnillo and Pan African. Meanwhile, things can always go wrong at key mines, including shutdowns due to safety accidents, as well as strikes. Persistent inflation, while benefitting gold, is also a headache for miners.
However, in terms of bullion itself, it tends to shine brightest when uncertainty rises. As mentioned, we have loads of that with currency debasement, high government debt, and President Trump’s on-off tariffs.
Goldman Sachs forecasts average central bank gold purchases of 80 tonnes this year, followed by 70 tonnes in 2026, as emerging markets pursue reserve diversification. This is a very powerful ongoing global trend.
Stepping back, gold’s epic bull run appears to have further to go.
