Gold Miners ETF (GDX) Hits a 52-Week High
For investors looking for momentum, VanEck Vectors Gold Miners ETF GDX is probably a suitable pick. The fund just hit a 52-week high and is up 49.7% from its 52-week low price of $30.64/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
GDX in Focus
This ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index, which is intended to track the overall performance of companies involved in the gold mining industry. It has AUM of $14.97 billion and charges 52 basis points in annual fees.
Why the Move?
Concerns about further pandemic-related lockdowns due to the aggravating coronavirus outbreak have once again prompted a flight to safe-haven assets. Moreover, the decline in U.S. dollar and Fed’s continued dovish stance are supporting the upside in the yellow metal. Notably, gold is considered a great store of value and hedge against market turmoil. This is making funds like GDX an attractive investment option.
More Gains Ahead?
It seems like it might remain strong since it has a positive weighted alpha of 6.92, which gives cues of further rally.