Long-standing low-performing gold mining stocks could begin to shine at a time when yellow metals are at their all-time highs, chart analysts noted. The Vaneck Gold Miners ETF (GDX) was very successful in 2025, surged by 48% per year, and increased by more than 9% this month alone. On Tuesday, Gold Futures reached a fresh, high of $3,509.90. Currently, some technology analysts have shifted their preferences towards gold miners over physical commodities, and say the group has more upward momentum. “From 2006 to 2020, it really was – to a considerable degree of performance by gold miners. And what’s flagging here is that over the past decade, the ratio between the two started to create space and create space.” “And now, as it starts to change higher from space, we think it has to do with the additional outperformance of gold miners and products looking ahead.” Indeed, technical analysts hope that both gold miners and physical goods will be over-acquired in the near future, given that each is over 20% above the 200-day moving average. However, he expects gold mining stock inventory to be purchased because the trend has the advantage “even in the coming years.” Wald expects GDX to easily surpass its 2011 peak at 64. That’s about 27% above where the ETF closed on Tuesday at 50.23. Roth MKM’s Chief Market Engineer GDX YTD Mountain GDX JC O’Hara made a similar observation over the weekend. A chart analyst who called Gold Miners his No. 1 industry group said the stocks were finally catching up to the product. “I think it’s interesting that while gold miners are better than gold, the gold miners charts are lagging behind in terms of pattern maturation. Last week, GDX was finally able to make a sustained breakout from a multi-year basic pattern,” O’Hara wrote on Sunday. “GLD broke out in mid-2024. I believe the pattern is wise. I believe GDX can still keep up.” “Way Too Cheap” investors are considering a simple way to add exposure to gold-backed ETFs such as SPDR Gold Trust (GLD) and Ishares Gold Trust (IAU) without paying for storage or insurance that comes with owning physical goods. However, gold mining companies with additional operational risk have other draws for investors. One is cheaper compared to historical reviews. For example, GDX is trading at 13.9 times forward P/E. The S&P 500 materials sector is currently trading at 19.1x forward P/E. Newmont, the world’s largest gold mining company, has traded at a P/E of 13.3 times ahead, an average of 20.7 times lower in the past decade. “If gold prices stay at these levels, stocks are really cheap,” said Chris Mancini, Associate Portfolio Manager at Gabelli Gold Fund (Goldx). “It’s all set to have a price for a gold stay, it’s higher or higher.” According to MorningStar, Goldx, which has an asset of $490 million in its managed assets, has had a total profit of over 52% so far. There is an expense ratio adjusted by 1.550%. Gold miners also usually pay dividends. This is a feature that is sought when the market is highly volatile. Newmont, for example, offers a dividend yield of 1.8%. Mancini says he has high belief in Northern Star Resources, an Australia-listed gold miner that offers dividends, and is buying back stocks in Western Australia and expanding the mines. “I think that’s what will ultimately wake up the market,” Mancini said. “The market ultimately wakes up to the fact that it earns money by owning gold stocks that it doesn’t get from owning physical metals.” Chart analysts have their own preferences for gold miners. Oppenheimer’s Wald said he prefers stocks that have cleared their peaks in 2011, such as Agnico Eagle Mines and Franco-Nevada, which have risen around 55% and 47% this year, respectively. He also supports Royal Gold and Wheelon’s precious metals, attracting around 37% and 48%. “We see such behavior as a sign of structural strength in the sense that they tend to protect these strains with weakness,” Waldo writes. O’Hara from Ross MKM included B2Gold and Coeur Mining among his favorite plays. Get tickets for Pro Live Join us on the New York Stock Exchange! An uncertain market? Earn Edge with CNBC Pro Live, the first exclusive event on the historic New York Stock Exchange. Access to expert insights is paramount in today’s dynamic financial situation. As a CNBC Pro subscriber, we recommend attending the first exclusive and in-person CNBC Pro live event held at the iconic NYSE on Thursday, June 12th. You will also get the opportunity to network with CNBC experts, talent and other pro subscribers during exciting cocktail hours on the legendary trading floor. Tickets are limited!
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