Gold share price targets and broker ratings in March 2022
In this article we take a look at recent moves in the gold price, as well as broker ratings and price targets for locally listed counters AngloGold, Goldfields, Harmony, DRD Gold and Pan African Resources.
Spot gold
As the war between Russia and Ukraine rages, the price of Gold looks set to renew gains boosted by safe haven appeal. Safe haven demand has superseded rising inflation as a catalyst for gains in gold.
The above chart shows the price of the precious yellow metal breaking out of a short-term range as well as oversold territory to resume its uptrend. 2000 appears to be the initial upside resistance target of the move, a break of which could see further gains towards the 2040 and 2070 levels respectively. Traders who are long might consider using a close below 1910 as a stop loss indication for the trade.
Gold share price targets and broker ratings
The below table shows locally listed gold counters, highlighting long term price targets and broker ratings as of the 24th of March 2022 and sourced from Refinitiv Workspace.
It should be noted that while these targets and levels provide a long-term view, there are a number of catalysts in markets right now which can see these targets far exceeded or missed in the context of extreme volatility which is abundant. Sharp changes in the underlying gold price and local currency will in turn equate to analyst re-ratings of the stocks. However, the below represents snapshots as of right now.
The consensus ratings on AngloGold Ashanti and Pan African Resources are currently ‘buy’, while Gold Fields and Harmony Gold currently carry long term average ratings of ‘hold’. DRD Gold has a long-term consensus rating of sell.
Gold Fields, Harmony Gold and DRD Gold all trade at premiums to long term price targets, while Anglo Gold trades more or less at ‘fair value’, while Pan African Resources trades at the deepest assumed discount to its long-term price target.
The arrow next to AngloGold Ashanti highlights the consensus rating having moved from hold to buy over the last month.
The arrow next to DRD Gold represents a downgrade in the consensus rating from hold to sell.
Gold Fields, Harmony and Pan African Resource broker ratings in consensus remain the same as in the previous month.
It should be noted that smaller gold producers DRD Gold and Pan African Resources represents small to mid-tier gold producers and in turn receive less analyst coverage.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
