Gold stocks were higher today despite a rise in U.S. inflation increasing the prospect of interest rate hikes to combat the spike.
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The VanEck Gold Miners ETF (GDX) was up 0.85% at $99.19 in mid-trading. Key stock Agnico Eagle Mines (AEM) was up 0.89%, with Newmont Mining (NEM) up 1.33% and Wheaton Precious Metals (WPM) up 2.4%.
The spot gold price was flat at $4,763 – see below.
In March, the Consumer Price Index rose 0.9% month-over-month, and up 3.3% on an annual basis. The monthly gain was the largest since June 2022, while the yearly change was the highest since May 2024.
The monthly spike in CPI inflation was largely driven by higher oil and gas prices resulting from the closure of the Strait of Hormuz.
The overall increase might put pressure on the Federal Reserve to hike interest rates in order to combat rising prices.
That will be bad news for gold investors as the precious metal tends to perform better in low interest rates environments. However, negotiations to try and find a peace deal in the U.S. and Iran war – which are scheduled to start over the weekend – could give gold investors more confidence if they end in success.
This should lead eventually to lower oil prices and a boost to economic demand helping metal and mining stocks.
What are the Best Gold ETFs to Buy Now?
We have rounded up the best gold ETFs to buy now using our TipRanks comparison tool. As can be seen below, the SPDR Gold MiniShares Trust (GLDM) has the best 1-year return of 55.86%.
