State Street Global Advisors has projected that gold could reach $5,000 per ounce by early 2027, reinforcing a constructive long-term outlook even after the precious metal experienced a sharp correction from its record highs earlier this year. With gold trading around $4,100-$4,170 per ounce in early July 2026, many investors are reassessing whether the recent pullback has created an attractive opportunity to increase exposure to the yellow metal.

Gold enjoyed a powerful rally at the start of 2026, climbing to unprecedented levels of $5,500-$5,600 per ounce before entering a meaningful correction that briefly pushed prices toward the $4,000 mark in late June. While the decline unsettled short-term traders, the subsequent rebound has been supported by softer-than-expected U.S. economic data, easing expectations of additional Federal Reserve rate hikes, lower real Treasury yields and a weaker U.S. dollar. DRDGOLD Limited (DRD Quick QuoteDRD - Free Report) , Idaho Strategic Resources, Inc. (IDR Quick QuoteIDR - Free Report) and Northern Dynasty Minerals Ltd. (NAK Quick QuoteNAK - Free Report) are three stocks that should be doing well in this environment.

Why the Long-Term Case Remains Strong

Structural drivers supporting gold remain intact. Strategic portfolio reallocations, continued central bank demand, geopolitical uncertainty and resilient investor interest can underpin prices over the longer term. State Street’s outlook envisions gold potentially trading in a broad $4,750-$5,500 range before ultimately reaching the $5,000 milestone by early 2027.

For long-term investors, the current environment may offer a favorable entry point rather than a reason for concern. Gold has historically served as a portfolio diversifier and a hedge during periods of market volatility, inflation, uncertainty and geopolitical stress. Following a sizable correction, valuations appear more balanced than they were during the market's euphoric peak, allowing investors to build positions with a longer investment horizon.

Should Investors Buy Gold Now?

Risks remain. A more hawkish Fed, stronger-than-expected economic growth or fading safe-haven demand could limit gold's upside and trigger additional volatility. Even so, correction phases are a normal feature of commodity markets. Investors considering gold should emphasize diversification, maintain realistic expectations and avoid excessive leverage. Those principles, combined with a long-term perspective, could help investors benefit if the bullish outlook for gold ultimately plays out.Top of FormBottom of Form

Our Choices

The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.

DRDGOLD is a gold miner. DRD’s expected earnings growth rate for the current year is 394.4%. The Zacks Consensus Estimate for its current-year earnings has improved 20.4% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.

Idaho Strategic Resources explores, develops and extracts gold, silver and base metal resources in North Idaho. IDR’s expected earnings growth rate for the current year is 33.3%. The Zacks Consensus Estimate for its current-year earnings has increased 14.3% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B.

Northern Dynasty acquires, explores and develops U.S. mineral properties targeting copper, gold, molybdenum, silver and rhenium. NAK’s expected earnings growth rate for the current year is 133.3%. The Zacks Consensus Estimate for its current-year earnings has increased 133.3% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B.