Gold-linked ETFs, including the VanEck Gold Miners (GDX), continued to gleam today as the price of gold surged to a record high.
Trump’s Latest Threat
The spot gold price surged to a best-ever $3,086.21 and is on track for a fourth straight weekly gain. Once again, the main driver behind the surge was uncertainty and no little fear about U.S. President Donald Trump’s tariff tirade.
Yesterday, Trump threatened even larger tariffs than the ones he has already proposed on Canada and the EU, such as a 25% tariff on imported cars, a 200% tariff on alcohol, and punitive rates on metals.
Gold is the natural safe haven for investors during this time, either by directly investing in gold mining stocks or via ETFs. The GDX was up 1%, while the SPDR Gold Shares ETF (GLD) was also nearly 1% higher.
ETFs in Good Shape
Both ETFs have benefited greatly from the economic and geopolitical uncertainty caused by President Trump and his administration in the first few months of his return to office. The GDX is up 32% over the last 3 months, with GLD up 15% over the same time period.
“It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade, and ongoing geopolitical uncertainty as well,” said Peter Grant, vice president and senior metals strategist at Zaner Metals, as reported by Reuters.
The price is, according to analysts, expected to keep rising, even on a path towards $4,000 in the next two years.
Is GDX a Good ETF to Buy Now?
On TipRanks, GDX has a Moderate Buy consensus based on 48 Buy, 10 Hold and 1 Sell rating. GDX stock’s consensus price target is $48.09 implying an 4.42% upside.
