UBS Analysts Favor Selective Gold Mining Stocks Amid Sector Resurgence

UBS analysts have turned bullish on Gold mining equities, noting their significant outperformance against physical gold this year. The VanEck Gold Miners ETF has surged 15% against spot gold prices over three months, with year-to-date gains exceeding 40%—a stark reversal from the sector's previous struggles.

"Miners are enjoying some time in the sunshine," the analysts observed, highlighting renewed investor confidence through strategic buybacks and organic growth initiatives. Barrick Gold and Franco-Nevada lead UBS's curated selection, though the firm cautions against blanket exposure: "We've shifted preference from expensive outperformers to cheaper turnaround stories."

The sector's revival comes as the miners ETF tests decade-highs last seen in 2011, suggesting structural improvements may finally be translating to shareholder value. M&A activity looms as a potential catalyst should gold prices maintain current ranges.