Why gold stocks have regained their shine: Expert

Should investors return to gold?

A new report from Global X has identified that Australian investors have used gold's recent pullback as a buying opportunity. 

After record outflows from Australian gold-related exchange traded funds in June, local investors changed course in July. 

Gold has long been a safe-haven asset for Australian investors, which contributed to its boom over the course of 2025 and into 2026. 

According to the report, investors allocated a combined $334 million to gold bullion and gold miners ETFs during the month, making it the fourth-strongest month on record for the combined category.

A group of gold nuggets.

Image source: Getty Images

Why has gold rallied?

According to Global X, the reversal suggests investors viewed the weakness as an opportunity rather than a reason to abandon gold. 

Gold climbed above US$4,600 an ounce this week, reaching a three-month high, while Bitcoin rallied towards US$77,000. Both moves accelerated after the US Treasury announced that it would at least double the maximum size of selected buyback operations for longer-dated government securities, from US$2 billion to at least US$4 billion per operation.

These operations allow the Treasury to repurchase older, less actively traded bonds, helping improve liquidity in the market. They are not the same as the US Federal Reserve printing money or launching quantitative easing, nor do they eliminate the government's debt burden.

Gold can appeal in this environment because it is scarce, globally recognised and not issued by a government.

Not a unique situation 

This behaviour is not unique to precious metals. 

Australian investors have repeatedly demonstrated a willingness to invest during market weakness when they believe the long-term case remains intact. 

A similar pattern emerged in Australian technology stocks between October 2025 and April 2026, when concerns about artificial intelligence disruption contributed to a decline of more than 40%. Investors continued adding exposure through the drawdown.

That same "buy-the-dip" mentality now appears to be extending to gold.

How to invest in gold?

For investors looking to add exposure to gold in their portfolio's, there are several options. 

One strategy is to target specific gold miners. 

Some popular options include: 

  • Newmont Corporation (ASX: NEM) – One of the largest gold mining companies in the world. 
  • Northern Star Resources Ltd (ASX: NST) – Large mining company with projects in Australia and the United States.

Another option is to target ASX ETFs that track the price of physical gold. 

One such fund is the Global X Physical Gold (ASX: GOLD) fund. 

It aims to deliver a return mirroring the growth in the Australian dollar gold price. 

Another option that targets miners rather than the physical gold price is the BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS). 

It targets the largest global gold mining companies (ex-Australia). 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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