The gold price just reached its highest level ever: Which miners are buys?

Here's why the precious metal just hit a record high.

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It could be another good day for gold miners Evolution Mining Ltd (ASX: EVN), Newmont Corporation (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price charged to a record high.

According to CNBC, gold futures settled at the highest level ever on Monday after traders bet that the US Federal Reserve will start cutting interest rates in the second half of 2024.

The gold futures contract for April gained 1.46% or US$30.60 to settle at US$2,126.30. This is the highest level since the contract's creation all the way back in 1974.

Gold price hits record on rate cut hopes

Traders have been bidding the gold price higher since the release of US personal consumption expenditures (PCE) inflation data last week which was in-line with the market's expectations.

As the PCE data is the US Federal Reserve's preferred inflation gauge, traders believe it is only a matter of time until rates are lowered. In fact, it could be just three months away, with some traders betting on the first cut happening in June.

Which gold miners are buys?

There are plenty of ways for investors to gain exposure to the sky-high gold price.

For example, the team at Macquarie thinks that Evolution Mining is a great option for investors. Last month, the broker put an outperform rating and $3.80 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.

In addition, the broker has outperform ratings on Northern Star and Newmont shares with price targets of $16.00 and $67.00, respectively. These price targets suggest very attractive potential upside of ~17% and ~38% from current levels.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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