Mining Stocks Signal Better Days for Gold
- Date: 22-Apr-2021
- Source: CNBC
- Sector:Financial Markets
- Country:Middle East
Mining Stocks Signal Better Days for Gold
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Overshadowed by the wild swings in Bitcoin and other cryptocurrencies, the original counterpoint to paper money“”gold“”has been quietly on the upswing this month.
Even more than the metal, shares of gold miners have rebounded and gained relative strength versus the broad stock market. Gold mining stocks tend to be a leading indicator for bullion given their earnings leverage relative to the metal's moves.
The
VanEck Vectors Gold Miners exchange-traded fund
(ticker: GDX) is up 18.31% from its low in late March. The rebound follows a bona fide bear market decline of 35.4% from the ETF's 52-week high last August to its 52-week low in March. But over the past month, the gold stock ETF is up 8.7% versus a 5.7% gain in the
S&P 500,
according to Yahoo Finance.
The