3 Gold Stocks Facing Pressure From Higher Rates And A Stronger Dollar

With gold prices under pressure after a 1.63% drop and the U.S. dollar at its strongest level in over a year, interest rate expectations are reshaping the risk profile for gold exposed stocks. Higher anticipated Federal Reserve hikes and softer demand for non yielding assets are now front and center as traders factor in three potential rate moves for 2026 and watch upcoming PCE inflation data closely. This article unpacks three stocks from the Gold and Precious Metals Stocks With Rate Sensitivity Risk screener that appear especially vulnerable to these rate and currency headwinds.

Overview: Newmont is a global mining company that primarily produces gold, while also extracting copper, silver, zinc and lead from a portfolio of mines across the Americas, Australia, Africa and Papua New Guinea. Founded in 1916 and based in Denver, it runs a large, diversified set of mining assets that support long term metal production.

Operations: Newmont generates its revenue across several large mining operations, led by NGM at US$4.1b, Peñasquito at US$3.8b, Boddington at US$2.3b, Ahafo South at US$2.3b, Yanacocha at US$2.2b and Cadia at US$2.5b, with additional contributions from sites such as Lihir, Merian and others.

Market Cap: US$104.0b

Newmont might look appealing with high profit margins, strong cash generation and analyst forecasts pointing to solid earnings. However, for a gold producer this exposed to metal prices, the latest 1.63% drop in gold and a stronger US dollar are hard to ignore. The company is investing heavily in assets such as Red Chris and absorbing the complexity of recent acquisitions, while also facing rising costs and mines that are expected to process lower grade ore at key sites like Cadia, Peñasquito and Lihir. New leadership appointments and reliance on divestments to support capital returns add another layer of uncertainty. For investors, the real question is whether Newmont’s quality and scale are enough to offset these growing macro and operational pressures.

Newmont’s scale and cash generation might be masking how exposed it is to weaker gold prices, a stronger dollar and rising costs. Before assuming the story is intact, review the analysis report for Newmont

Overview: Royal Gold is a Denver based company that provides financing to mining projects around the world in return for streams and royalties on future production. This gives it exposure to gold, silver, copper and other metals without running the mines itself.

Operations: Royal Gold generates most of its revenue from stream interests at about US$876.8m and the remainder from royalty interests at about US$419.3m, with the largest regional contribution coming from North America at about US$812.7m.

Market Cap: US$17.16b

Royal Gold may appeal if you want exposure to gold without direct operating risk, but its streaming and royalty income is tightly linked to metal prices, at a time when gold has fallen 1.63% and the stronger U.S. dollar is weighing on demand for non yielding assets. High profit margins and a royalty heavy model sit alongside funding from a large revolving credit facility and ongoing portfolio reshaping at assets like Hod Maden. At the same time, some analysts judge the stock expensive and have trimmed price targets. If you are weighing up whether these long life contracts offset the pressure from higher rate expectations and softer gold sentiment, the detailed analysis starts from here.

Royal Gold’s high margins and royalty streams can mask how tightly everything is tied to metal prices and financing costs, especially with rate expectations shifting again. It is worth reading the analysis report for Royal Gold

Overview: SPDR Gold Shares (GLD) is an exchange traded fund that holds physical gold bullion, giving you a way to get direct exposure to moves in the gold price through a stock market listed vehicle rather than storing gold yourself.

Market Cap: US$136.78b

SPDR Gold Shares sits at the intersection of rising rate expectations and weaker demand for non yielding assets, which is why gold’s 1.63% drop and a stronger U.S. dollar may be significant for GLD holders. The ETF appears heavily undervalued against one fair value model, and recent earnings growth has been very strong, yet revenue is effectively zero and earnings quality is influenced by a high share of non cash items. With 100% of liabilities funded by external borrowing and sentiment turning against gold, investors face the risk of focusing on headline growth while underestimating how higher yields and further dollar strength could affect flows into GLD.

SPDR Gold Shares looks tightly wired to rate expectations, yet the ETF’s strong recent earnings growth and high non cash items may be masking key risks. Before assuming GLD is just a simple gold proxy, review the analysis report for SPDR Gold Shares

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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