Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
Affiliate Disclosure: Bestcanadianstocks.ca may earn a commission when you open an account or make a purchase through links on this page. This comes at no additional cost to you and helps us continue providing free financial content to Canadian investors.
While Canadian banks lagged and the S&P/TSX Composite hovered near record territory, it was gold producers that carried the index higher this week. On Friday, June 27, 2026, Barrick Mining rose 1.6% and Franco-Nevada climbed 2.3%, offsetting weakness in financials and helping the TSX close around 34,980 — just shy of the ~35,002 near-record touched on June 22. With gold stocks surging and precious metals riding a wave of geopolitical calm and a softer US dollar, we thought it was worth unpacking what’s driving the strength, what these two names have been doing, and what the risks look like for Canadian investors.
All market data as of June 29, 2026.
What’s Powering Gold Right Now
Gold spot prices sat around US$4,036 per ounce on June 29, down about 1.25% on the day but still historically elevated. The metal traded near US$4,113 per ounce on June 23, and it’s been one of 2026’s standout assets. A few forces are converging: easing tensions in the Middle East — particularly between the US and Iran — have reduced safe-haven demand volatility, but a softer US dollar and cooling expectations of further US interest rate hikes have kept structural support under the metal. When real yields ease and the greenback weakens, gold tends to shine.
That backdrop is translating directly into equity performance for Canadian gold producers, which dominate the materials sector on the TSX. As we discussed in our mid-year TSX review, materials and energy have been among the index’s most interesting performers this year, and gold miners are a big reason why.
Franco-Nevada: The Royalty Play
Franco-Nevada (TSX: FNV) is not a traditional miner — it’s a gold-focused royalty and streaming company. Rather than digging ore out of the ground, Franco-Nevada owns royalties and streams tied to producing mines, which means it collects a percentage of revenue or production with lower operating risk and capital intensity. That structure tends to deliver higher margins and less direct exposure to cost inflation or operational hiccups.
The stock is up roughly 34% since January 2026, outpacing the broader mining sector. First-quarter 2026 results help explain why: revenue came in at US$650.7 million, up 78% year-over-year, while net income hit US$468.6 million, up 123% from the prior-year quarter. Earnings per share landed at US$2.43, more than double the US$1.09 posted in Q1 2025. When gold prices rise, royalty companies like Franco-Nevada see nearly pure leverage to the upside, without the same operating-cost pressures that traditional miners face.
Barrick Mining: Dividend Hikes and a NewCo IPO
Barrick Mining (TSX: ABX, NYSE: B) had an equally strong first quarter. The company reported revenue of US$5.22 billion, up 67% year-over-year, and net income of US$1.60 billion, up 238% from Q1 2025. Earnings per share came in at US$0.96, versus US$0.28 in the prior-year period. Those are the kind of numbers that get boards thinking about shareholder returns.
And Barrick delivered: the company raised its quarterly dividend to 42 cents per share for Q4 and bumped its base dividend to 17.5 cents per share. It also adopted a payout framework targeting roughly 50% of attributable free cash flow — language that signals a sustained commitment to cash returns. On top of that, Barrick announced a US$3 billion buyback program, further underlining management’s confidence in the cash generation.
Perhaps the most interesting corporate development is Barrick’s plan to spin off a new North American gold entity — tentatively called “NewCo” — housing Nevada Gold Mines, Pueblo Viejo, and the Fourmile project. The company intends to IPO roughly 10–15% of the new entity while retaining a controlling stake, with completion targeted for late 2026. Mark Hill has been appointed CEO of the venture. The move is designed to unlock value and give investors direct exposure to Barrick’s highest-quality North American assets, though the market’s ultimate valuation of the spin remains to be seen.
For Canadian dividend investors, Barrick’s combination of a rising payout and a stable production base makes it one of the more compelling stories in the sector right now.
The Risk Side: Volatility, Cyclicality, and Valuation
None of this comes without risk. Gold is a cyclical asset, and miners — even well-run ones — are leveraged plays on the commodity price. A pullback in gold from current levels would hit producers harder than the metal itself. Royalty companies like Franco-Nevada have lower operating risk, but they’re not immune to falling gold prices or slower production at the mines they hold royalties on.
Valuations have also run up. When a stock is up 34% year-to-date, much of the good news may already be priced in. If geopolitical tensions flare again, if the US dollar strengthens, or if real yields rise unexpectedly, gold could reverse quickly — and the equity gains would likely unwind just as fast.
Finally, one strong day or week is not a signal to chase. Markets are noisy, and Canadian investors should be thinking in terms of long-term positioning and diversification, not headlines.
What It Means for Canadian Investors
Gold miners can play a useful role in a diversified Canadian portfolio, particularly for investors who want exposure to commodities without directly holding bullion. If you’re building a position, registered accounts — TFSAs and RRSPs — offer tax-sheltered upside and dividend income, which is especially relevant given Barrick’s recently enhanced payout.
But don’t confuse a strong week with a long-term thesis. The best investors we know build positions gradually, size them appropriately, and never bet the farm on a single commodity or sector.
If you’re looking to add exposure to Canadian gold miners or want to explore other TSX opportunities, Questrade offers commission-free ETF purchases and low-cost equity trading — a solid platform for long-term, cost-conscious investors. Open an account here.
Gold’s rally has been impressive, and Canadian miners are finally getting their moment in the spotlight. Just make sure you understand what you’re buying, why you’re buying it, and how it fits into the bigger picture. Because when gold turns, it turns fast.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.