Gold prices are surging, with futures briefly topping $5,100 and spot prices hitting new highs. Central banks, ETF inflows, and retail investors are all contributing to the rally. Analysts predict further upside, with price targets ranging from $5,700 to $6,000 per ounce. Investors are eyeing mining stocks like Vale S.A. and Rio Tinto Group, which have seen significant gains.

Vale S.A., a heavyweight miner, has surged 90% over the past year, with stock prices hitting $17.34. While momentum remains strong, the stock is in overbought territory. Despite this, valuation is reasonable and the company offers a hefty dividend yield of 5.3%. Vale reported impressive Q3 results, beating expectations and showing strong cash generation.

Rio Tinto, an established mining group, has seen its stock climb 60% over the past year, reaching $97.11. Valuation remains attractive, with a PEG ratio below 1. The company offers a solid 4% dividend yield. Rio Tinto’s recent performance has been strong, with revenue, profit, and cash flow all showing positive growth. Analysts are optimistic about the stock, with a consensus “Moderate Buy” rating.

Both Vale and Rio Tinto are gearing up to release their fiscal year earnings reports soon. Analysts expect continued growth in EPS for both companies. The stocks have outperformed their average price targets, but there is still room for potential upside. Overall, the outlook for these mining stocks remains positive as gold prices continue to climb.

Read more at Yahoo Finance: Analysts Love These 2 Picks-and-Shovels Gold Stocks. Should You Buy Them as Gold Prices Hit New Record Highs?