Gold miners become most profitable sector as Wall Street takes notice

Bank of America equity analysts report that gold mining companies have transformed into the market’s most profitable sector. Free‑cash flow for miners is now about ten times higher than in 2020, long‑term debt has been cut roughly in half, and earnings yields have risen to 12%, the highest across all sectors. Profit margins for the top 20 miners average roughly 31%, almost double the 17% margins of financials and technology firms. Despite these strong fundamentals, the sector trades at its cheapest valuation relative to the S&P 500 in the past two decades. BofA lowered its 2026 gold price target by 14% to $4,360 per ounce but still projects prices could reach $6,000 by 2027, indicating that the high margins are driven by operational discipline rather than a gold price surge.