Gold Price Outlook Blocks M&A Deals From Closing, Perseus CEO Says

Gold's volatile price is now influencing corporate dealmaking, with Perseus Mining's chief executive saying companies are struggling to agree on valuations.

Craig Jones described mergers and acquisitions (M&A) activity as high, though few deals are being completed.

Valuation Wall Stops Gold's Takeover Wave

According to Reuters, elevated bullion prices have fueled a series of producer takeovers. Northern Star Resources acquired De Grey Mining, while Equinox Gold absorbed Calibre Mining.

Some of the larger transactions have stalled, though. Zijin Gold's $4 billion plan to take over Allied Gold fell apart before closing. Northern Star rejected Gold Fields' A$38.7 billion approach.

Perseus, for its part, allowed its offer for explorer Predictive Discovery to lapse last year after Robex Resources sweetened its bid. Jones told Reuters that the gold outlook is steering companies' transaction decisions.

“Companies are trying to work out what gold prices will do before making transaction decisions,” he said.

Boston Consulting Group (BCG) saw a similar issue across global M&A. It said execution, particularly closing valuation gaps, has overtaken funding as the key bottleneck.

$4,000 Floor Collides With Stronger-Dollar Forecast

Jones said buyers and sellers are being pushed apart by differing assumptions about where gold is headed.

“Some companies have more aggressive assumptions and some more conservative assumptions,” he stated.

Each company then must judge whether the risk-reward of a transaction is worthwhile, he added. The decision relies heavily on gold's price, which has moved sharply during 2026.

The metal gained about 25% between the start of the year and its late-January record, according to TradingView. By mid-July, it stood roughly 8% below the January 1 level. Gold prices are now 4.34% lower for 2026.

The Kobeissi Letter sees 2026 possibly ending as the most volatile year for gold futures in more than 4 decades. Forecasters remain split on where prices go next.

Morgan Stanley favors gold on a 12-month view. Amy Gower, the firm's head of metals and mining strategy, sees $4,000 as a strong floor, citing steady central bank buying.

ARK Invest CEO Cathie Wood is on the other side. She expects a much stronger dollar and argues that tighter Fed policy could unwind some of the dollar's losses against gold.