The VanEck Gold Miners ETF (GDX) climbed 2.3% in early trading Thursday as traders reacted to shifting interest rate expectations and escalating tensions in the Middle East. The move comes ahead of key economic data that could influence Federal Reserve policy.
Analysts attributed the rally to two primary factors: First, weaker-than-expected U.S. economic data suggesting potential Fed rate cuts later this year. Second, reports of renewed Iranian nuclear activities that typically boost gold’s safe-haven appeal. “When rates appear to peak and geopolitical risks emerge, gold miners often outperform physical gold due to operating leverage,” noted a commodities strategist at a major investment bank who asked not to be named.
The ETF’s gains outpaced spot gold’s 1.1% rise, reflecting miners’ sensitivity to gold price movements. Market participants await Friday’s PCE inflation data – the Fed’s preferred gauge – which could either reinforce or undermine the current rally.