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Gold's Worst Quarterly Selloff in 13 Years: 3 Miners for the Long Haul
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Key Takeaways
Gold fell 15% in the second quarter of 2026, its worst quarterly drop in 13 years.
DRDGOLD's tailings model, debt-free balance sheet and Vision 2028 projects support growth.
Newmont and Barrick Mining hold strong liquidity and project pipelines to navigate volatility.
Gold has had a turbulent year so far. After soaring to a record high of nearly $5,600 per ounce in January, the precious metal suffered a sharp reversal. Gold prices logged their steepest quarterly decline in 13 years, with spot prices falling 15% in the second quarter of 2026, per Canadian Mining Journal. This is the worst drop since the second quarter of 2013, with maximum losses coming in June.
The selloff was driven by rising inflation concerns following the Middle-East conflict, which pushed energy prices higher and raised the likelihood of an interest rate hike by central banks. In the United States, inflation remains well above the Fed’s 2% target, and traders are pricing in a 65% chance of a rate hike in September, per the CME FedWatch tool.
Higher interest rates and a stronger U.S. dollar have been putting pressure on gold. These headwinds could keep gold prices volatile in the near term. But the recent correction may have created an attractive entry point into high-quality gold mining stocks like DRDGOLD Limited (DRD - Free Report) , Newmont Corporation (NEM - Free Report) and Barrick Mining Corporation (B - Free Report) for long-term investors.
3 Gold Miners Worth Your Money
DRDGOLD: The company stands out from traditional gold miners with its specialized gold tailings retreatment business, which involves recovering gold from previously mined waste material. This business model helps keep operating costs relatively low while reducing geological risks associated with conventional mining. DRDGOLD remains on track to achieve the upper end of its 2026 production guidance of 140,000-150,000 ounces while maintaining a debt-free balance sheet and sufficient liquidity to internally fund its expansion plans.
The company delivered strong operational and financial results for the quarter ended March 31, 2026, supported by higher throughput and disciplined cost management. The company's Vision 2028 strategy, including its “Big 5” projects, is expected to expand processing capacity to 3 million tons per month and increase annual gold production to about 200,000 ounces over the medium term. Backed by a strong financial position, steady execution and a differentiated operating model, DRDGOLD appears well-positioned to navigate near-term gold price volatility while delivering long-term growth.
DRD stock currently sports a Zacks Rank #1 (Strong Buy) and has a Value Score of B. The Zacks Consensus Estimate for DRDGOLD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 164% and 87%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont: It is one of the world's largest gold producers, with a diversified portfolio of mines across North and South America, Australia and Africa. The company remains well-positioned for long-term growth, backed by a strong pipeline of projects that are expected to boost production, extend mine life and support future earnings. Its acquisition of Newcrest has further strengthened its portfolio by adding high-quality assets and creating opportunities for cost synergies.
At the same time, Newmont continues to optimize its asset base by focusing capital on its most profitable, long-life operations while improving operational efficiency. The company also boasts a strong financial position, ending the first quarter of 2026 with approximately $12.8 billion in liquidity, including $8.8 billion in cash and cash equivalents. Its free cash flow jumped 161% year over year to a record $3.1 billion, highlighting the strength of its operations. These factors make Newmont well-equipped to navigate near-term gold price volatility while delivering long-term value.
NEM stock currently carries a Zacks Rank #2 (Buy) and has a Value Score of B. The Zacks Consensus Estimate for Newmont’s 2026 and 2027 EPS implies year-over-year growth of 44% and 9%, respectively.
Barrick Mining: It is one of the world's largest gold producers, with a diversified portfolio of gold and copper assets. The company is poised for long-term growth, supported by several large projects that are progressing on schedule and within budget. These include the Goldrush mine, which is expected to reach annual production of 400,000 ounces by 2028, and the high-grade Fourmile project, which has the potential to become another Tier One mine. Barrick Mining is also expanding its Lumwana mine in Zambia into a major copper operation, further strengthening its growth prospects.
Financially, the company remains on a solid footing, ending the first quarter of 2026 with around $7.1 billion in cash and cash equivalents. Strong operating performance drove operating cash flow up 111% year over year to roughly $2.6 billion, while free cash flow nearly tripled to $1.2 billion. Combined with its shareholder-friendly dividend policy and healthy balance sheet, Barrick Mining appears well equipped to deliver long-term value despite near-term gold price volatility.
B stock currently carries a Zacks Rank #3 (Hold) and has a Value Score of A. The Zacks Consensus Estimate for Barrick Mining’s 2026 and 2027 EPS implies year-over-year growth of 56% and 15%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Gold's Worst Quarterly Selloff in 13 Years: 3 Miners for the Long Haul
Key Takeaways
Gold has had a turbulent year so far. After soaring to a record high of nearly $5,600 per ounce in January, the precious metal suffered a sharp reversal. Gold prices logged their steepest quarterly decline in 13 years, with spot prices falling 15% in the second quarter of 2026, per Canadian Mining Journal. This is the worst drop since the second quarter of 2013, with maximum losses coming in June.
The selloff was driven by rising inflation concerns following the Middle-East conflict, which pushed energy prices higher and raised the likelihood of an interest rate hike by central banks. In the United States, inflation remains well above the Fed’s 2% target, and traders are pricing in a 65% chance of a rate hike in September, per the CME FedWatch tool.
Higher interest rates and a stronger U.S. dollar have been putting pressure on gold. These headwinds could keep gold prices volatile in the near term. But the recent correction may have created an attractive entry point into high-quality gold mining stocks like DRDGOLD Limited (DRD - Free Report) , Newmont Corporation (NEM - Free Report) and Barrick Mining Corporation (B - Free Report) for long-term investors.
3 Gold Miners Worth Your Money
DRDGOLD: The company stands out from traditional gold miners with its specialized gold tailings retreatment business, which involves recovering gold from previously mined waste material. This business model helps keep operating costs relatively low while reducing geological risks associated with conventional mining. DRDGOLD remains on track to achieve the upper end of its 2026 production guidance of 140,000-150,000 ounces while maintaining a debt-free balance sheet and sufficient liquidity to internally fund its expansion plans.
The company delivered strong operational and financial results for the quarter ended March 31, 2026, supported by higher throughput and disciplined cost management. The company's Vision 2028 strategy, including its “Big 5” projects, is expected to expand processing capacity to 3 million tons per month and increase annual gold production to about 200,000 ounces over the medium term. Backed by a strong financial position, steady execution and a differentiated operating model, DRDGOLD appears well-positioned to navigate near-term gold price volatility while delivering long-term growth.
DRD stock currently sports a Zacks Rank #1 (Strong Buy) and has a Value Score of B. The Zacks Consensus Estimate for DRDGOLD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 164% and 87%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont: It is one of the world's largest gold producers, with a diversified portfolio of mines across North and South America, Australia and Africa. The company remains well-positioned for long-term growth, backed by a strong pipeline of projects that are expected to boost production, extend mine life and support future earnings. Its acquisition of Newcrest has further strengthened its portfolio by adding high-quality assets and creating opportunities for cost synergies.
At the same time, Newmont continues to optimize its asset base by focusing capital on its most profitable, long-life operations while improving operational efficiency. The company also boasts a strong financial position, ending the first quarter of 2026 with approximately $12.8 billion in liquidity, including $8.8 billion in cash and cash equivalents. Its free cash flow jumped 161% year over year to a record $3.1 billion, highlighting the strength of its operations. These factors make Newmont well-equipped to navigate near-term gold price volatility while delivering long-term value.
NEM stock currently carries a Zacks Rank #2 (Buy) and has a Value Score of B. The Zacks Consensus Estimate for Newmont’s 2026 and 2027 EPS implies year-over-year growth of 44% and 9%, respectively.
Barrick Mining: It is one of the world's largest gold producers, with a diversified portfolio of gold and copper assets. The company is poised for long-term growth, supported by several large projects that are progressing on schedule and within budget. These include the Goldrush mine, which is expected to reach annual production of 400,000 ounces by 2028, and the high-grade Fourmile project, which has the potential to become another Tier One mine. Barrick Mining is also expanding its Lumwana mine in Zambia into a major copper operation, further strengthening its growth prospects.
Financially, the company remains on a solid footing, ending the first quarter of 2026 with around $7.1 billion in cash and cash equivalents. Strong operating performance drove operating cash flow up 111% year over year to roughly $2.6 billion, while free cash flow nearly tripled to $1.2 billion. Combined with its shareholder-friendly dividend policy and healthy balance sheet, Barrick Mining appears well equipped to deliver long-term value despite near-term gold price volatility.
B stock currently carries a Zacks Rank #3 (Hold) and has a Value Score of A. The Zacks Consensus Estimate for Barrick Mining’s 2026 and 2027 EPS implies year-over-year growth of 56% and 15%, respectively.