Is the Gold Mining ETF Rally Losing Momentum?

The VanEck Gold Miners ETF (GDX) has encountered significant volatility in recent trading sessions. Having delivered an extraordinary performance exceeding 100% year-to-date, the fund is now displaying clear signs of exhaustion. Recent declines approaching 7% over a single month are prompting investors to question whether the gold mining equities rally has reached its conclusion.

A pivotal development occurred in late September when the fund transitioned its underlying benchmark. The ETF now tracks the MarketVector Global Gold Miners Index, replacing the previous NYSE Arca Gold Miners Index. This strategic realignment broadens the fund’s exposure to include international gold and silver mining operations, alongside royalty and streaming companies. Concurrently, the sector witnessed major consolidation Read more...