Business
Gold's Worst Quarterly Selloff in 13 Years: 3 Miners for the Long Haul
Gold's Worst Quarterly Selloff in 13 Years: 3 Miners for the Long Haul
About this update from Drdgold Ltd.
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, Newmont Corporation NEM and Barrick Mining Corporation B for long-term investors.3 Gold Miners Worth Your MoneyDRDGOLD: 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 DRDGO...