Eldorado (EGO) stock surged 5.51% in pre-market trading on Monday, riding the wave of a broader rally in gold stocks. The precious metal producer's shares gained momentum as investors flocked to gold-related assets amid a significant uptick in spot gold prices.

The surge in Eldorado's stock price aligns with the overall trend in the gold sector, with other major players like Gold Fields and Harmony Gold also seeing substantial pre-market gains of around 5%. This sector-wide rally is primarily driven by a nearly 2% increase in spot gold prices, which reached $3,305 per ounce. The weakening dollar has contributed to gold's attractiveness as a safe-haven asset.

Adding fuel to the gold stock rally is Goldman Sachs' bullish outlook on the precious metal. The investment bank reiterated its structural bullish view on gold, projecting prices to reach $3,700 per ounce by year-end and $4,000 by mid-2026. In extreme scenarios, Goldman Sachs even suggests that gold could potentially trade near $4,500 per ounce by the end of 2025, further boosting investor confidence in gold-related stocks like Eldorado.