The long-awaited outperformance of gold stocks relative to the yellow metal may finally be arriving.
Not only did the Market Vectors Gold Miners ETF (GDX) rally to a new all-time high this week – and thereby confirm the new record in the price of gold – but today the gold stocks ETF rebounded into positive territory in the face of a $56, or 3.0%, sell-off that took the yellow metal down to $1,819 per ounce.
The GDX opened considerably lower alongside gold bullion, reaching an intra-day low of $63.10 this morning. As trading progressed, however, the GDX rebounded as traders and investors scooped up shares of many of the world’s largest gold producers. The gold stocks ETF bounced back by 3.7% to finish higher by $0.09 at $65.43 per share.
In doing so, the GDX outpaced the yellow metal by its largest margin this year.