Gold mining stocks bounced back today as investors rediscovered the precious metal’s status as a safe haven during times of turmoil.
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The VanEck Gold Miners ETF (GDX) was up 3.29% today with major holdings Agnico Eagle Mines (AEM) up 2.38%, Newmont Mining (NEM) up 2.55%, and Wheaton Precious Metals (WPM) up 4.43%.
The spot gold price was up 3% to $4,514.92
The gold price has been a loser in the current military and energy conflict between the U.S., Israel and Iran. A rising oil price has brought with it the fear of inflation and the prospect of higher interest rates to combat that concern.
Gold tends to do better in times of low interest rates, which had been expected to be the path taken by leading central banks this year before the conflict started. Those factors are still very much in place despite some talk from President Trump that peace negotiations with Iran are progressing well.
What is interesting then is the rise of gold today. This has prompted some analysts to suggest that the precious metal’s tradition as a safe haven is finally winning out over these inflation concerns.
Despite Trump’s hopes, the conflict has the potential to become murkier, with the possibility of U.S. boots on the ground in Iran. That could make gold look even more attractive in the days ahead.
What are the Best Gold ETFs to Buy Now?
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