Gold Performance in Q3 2024

Gold prices outperformed silver in Q3 2024, with a 14% increase, reaching a high of $2,672 per ounce. Silver rose by 8%, remaining 1.7% below its peak of $32.

According to Bank of America (BofA), silver struggled due to weaker industrial demand, while gold benefits from central bank purchases and strong Asian consumer buying. This shift occurred alongside the U.S. Federal Reserve’s initial rate cut in years, leading to a change in global gold ETF flows from selling to buying.

Despite the metals’ gains, BofA reports that gold equities have underperformed. Year-to-date (YTD), gold is up 29% and silver 33%; however, the S&P/TSX Global Gold Equity Index is up just 32%, and the Philadelphia Gold and Silver Equity Index (XAU) has risen 29%, both down 3% from late September highs.

Top Gold Equities

• IAMGOLD (NYSE:IAG): +109%
• New Gold (NYSE:NGD): +103%
• Kinross Gold (NYSE:KGC): +56%
• Agnico Eagle Mines (NYSE:AEM): +49%
• Alamos Gold (NYSE:AGI): +48%

Underperformers

• SSR Mining (NASDAQ:SSRM): -45%
• B2Gold (NYSE:BTG): +1%
• Endeavour Mining: +7%
• Barrick Gold (NYSE:GOLD): +12%
• Franco-Nevada: +13%

Mid-tier gold equities showed momentum in Q3, with both the S&P/TSX Global Gold Equity Index and XAU rising 18%. New Gold led with a 52% gain, followed by IAMGOLD (+41%) and SSR Mining (+32%).

Conclusion

Overall, while precious metals have seen a rally, gold equities have struggled to keep pace, especially earlier in the year.