On Friday (15 March), the gold price made a recent all-time excessive, breaking above $3,000 per oz. This can be a large psychological barrier to have hit, with plenty of traders centered on the information. But the good thing about this transfer could possibly be felt through greater share costs this yr for some particular UK shares. Listed below are two for traders to think about.

A gold miner

Fresnillo (LSE:FRES) may stand to achieve on the gold price spike. Whereas primarily a silver miner, it has substantial gold manufacturing too, producing important income from greater gold costs.

During the last yr, the inventory is up a whopping 97%. A part of this may be attributed to the transfer greater in gold and silver costs earlier than the newest barrier was smashed. Basically, income from the producer is impacted by the tip promoting price. So it doesn’t shock me that the 2024 outcomes confirmed a 26.9% improve in income versus 2023. EBITDA greater than doubled!

Other than simply the price rises, the CEO spoke about “operational discipline and a continued focus on cost efficiencies.” That is nice, and may assist the corporate no matter what occurs to valuable metallic costs this yr. But with gold hitting $3,000, I imagine Fresnillo will really feel the advantages, with elevated promoting costs additional boosting income this yr.

One danger going ahead is manufacturing hassle on the Sabinas mine. This cropped up late final yr, with any additional points negatively impacting funds this yr as manufacturing output must be adjusted decrease.

Pondering outdoors the field

A second concept is HSBC (LSE:HSBA). The worldwide banking share has risen by 48% over the previous yr. But some may marvel why I feel a financial institution may do nicely with rising gold costs. Stick with me.

The primary motive is because of the truth that it has publicity to gold buying and selling and funding merchandise. If gold costs surge, demand for gold-backed ETFs and monetary merchandise ought to rise, benefitting the financial institution’s buying and selling revenues.

Another excuse is knowing why gold costs are rallying. It’s principally on account of traders dashing to purchase a safe-haven asset, on account of uncertainty on this planet proper now. With folks nervous, one other signal might be rising money holdings. It will profit the enterprise, because it pays a modest quantity of curiosity on deposits, whereas it receives curiosity near the financial institution base charge. This revenue ought to improve if folks maintain holding money.

I’m aware that the corporate could possibly be negatively impacted by additional rate of interest cuts from the UK and US this yr. If this occurs, the online curiosity margin will shrink, placing strain on earnings later in 2025.

Finally, I feel each shares are price contemplating for an investor who desires to reap the benefits of the latest gold transfer.