Gold Fields (GFI) stock surged 8.75% in pre-market trading on Thursday, following the rally in spot gold prices which topped a new historical high of $2,950 per ounce.
The precious metal has been on a tear this year, gaining over $320 or more than 12% year-to-date, driven by sustained demand from investors seeking a safe-haven asset amid economic uncertainties and geopolitical tensions.
As a leading gold mining company, Gold Fields is expected to benefit significantly from higher gold prices, which will improve its profit margins and cash flow generation. The surge in its stock price reflects investors' optimism about the company's prospects in the current bullish environment for gold.
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