Gold trades near record highs, and Australia's two largest ASX-listed gold miners are riding the wave.
Here is why the story may not be over yet.
Gold hit US$5,417 per ounce in January 2026, a new all-time high, before pulling back amid rising inflation expectations and interest rate uncertainty.
Today, the yellow metal trades around US$4,730 per ounce, still well above the levels at which Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) can generate substantial free cash flow.
With several structural tailwinds still intact, the bull case for both stocks remains interesting.
Image source: Getty Images
What is driving the gold price
Central bank buying remains robust, with approximately 70% of central banks surveyed at a recent Goldman Sachs conference expecting global gold reserves to rise in 2026.
Geopolitical tensions across the Middle East, combined with ongoing concerns about Western fiscal sustainability, continue to support demand for gold as a safe-haven asset.
Ian Samson, a portfolio manager at Fidelity International, said:
We continue to expect gold to rally in 2026, as the drivers of its strong run remain intact.
Global X forecasts the gold price to hit US$5,000 per ounce in 2026, with the potential to reach US$6,000 if global equity markets deteriorate or geopolitical tensions escalate further.
Evolution Mining
Evolution Mining hit an all-time high share price of $17.75 on 2 March 2026, before pulling back to trade around $13.20 today.
The company operates six mines across Australia and Canada, generating EBITDA margins above 50% at current gold prices.
Evolution recently declared a fully-franked dividend of 20 cents per share and has paid fully-franked dividends consistently since August 2017.
Northern Star Resources
Northern Star paid a record fully-franked final dividend of 30 cents per share in September 2025 and an interim dividend of 25 cents in March 2026, both driven by the surging gold price.
The stock has more recently come under pressure following a profit warning tied to higher operating costs, which sent shares sharply lower.
For investors with conviction on the gold price outlook, that pullback could represent a more attractive entry point.
Foolish Takeaway
Gold miners carry operational risk, cost inflation risk, and significant sensitivity to the gold price itself.
But with gold supported by persistent central bank demand, geopolitical uncertainty, and a structurally weaker US dollar, Evolution Mining and Northern Star both offer compelling ways to participate in the theme for patient, risk-aware investors.
