On the lookout for lifeboats as monetary markets sink? Right here’s what I believe may be one of many best FTSE 100 shares to contemplate right now.

A traditional protected haven

Whereas inventory markets threaten to crash, gold costs proceed to go from energy to energy. Retail demand for the yellow metallic is at ranges not seen because the Covid-19 disaster. And right now, costs reached recent peaks above $3,500 per ounce.

Astonishingly, gold has posted day by day positive factors of $100 or extra in three of the final eight days. This has pulled the share costs of treasured metallic producers like Fresnillo (LSE:FRES) by way of the roof.

This specific FTSE 100 miner has simply burst by way of £10 per share for the primary time since early 2021. I believe it may proceed surging.

Gold’s risen 44% over the previous 12 months, propelled by expectations of inflation-boosting rate of interest cuts. Indicators of rising geopolitical rigidity and the introduction of growth-sapping commerce tariffs have additionally pushed costs increased.

Fed tensions enhance

However this isn’t all. Extra lately, treasured metals have soared on threats by US President Donald Trump to take away Federal Reserve chief Jerome Powell.

To Adrian Ash, analyst at gold retailer BullionVault, this comes as no shock. He that explains: “gold tends to do well when other assets do badly, but it does best when people lose faith in central banks, and Trump is doing everything he can to destroy trust and confidence in the Federal Reserve.”

The risk to the Fed’s impartiality and the US economic system has additionally hammered the US greenback, giving gold added assist. A subdued buck makes it cheaper to purchase dollar-denominated belongings like commodities.

By the way, a weaker US foreign money gives Fresnillo — which incurs bills in Mexican pesos however stories in {dollars} — with an change charge enhance.

With no indicators of the White Home watering down its rhetoric or altering its financial insurance policies, I anticipate circumstances to stay supportive for gold and for gold producers.

Taking inventory

I like gold shares like Fresnillo on this local weather, as their earnings progress tends to outpace will increase within the metallic price. Merely put, most of their prices are fastened, that means that just about each further greenback earned flows straight to the underside line when gold values enhance, amplifying income progress.

Gold costs are considerably forward of Fresnillo’s all-in sustaining prices (AISCs), which in 2024 averaged $1,578.45 per ounce throughout its gold operations. And with bullion persevering with to pattern increased, the margin between market price and manufacturing price is steadily widening, additional magnifying the Footsie agency’s positive factors.

It’s essential to do not forget that the Mexican firm’s additionally a serious silver producer, and that the outlook right here is much less encouraging than that of gold. As the worldwide economic system cools, the dual-role metallic may stoop if industrial consumption falls.

Whereas extra price choppiness might be forward, silver costs in the mean time stay comfortably forward of the miner’s silver AISCs (these averaged $18.52 per ounce final 12 months). A pointy decline can’t be dominated out, however for now, the corporate nonetheless has a cushty margin to take care of robust profitability.

With gold costs hovering, I believe that Fresnillo’s among the best FTSE 100 shares to contemplate shopping for within the present local weather.