Gold Stock ETF GDX Rallies as Trump Hails Possible Iranian Peace

Gold mining stocks bounced back today on hopes of an end to the Iran War.

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The VanEck Gold Miners ETF GDX +4.37% ▲ was up 4.29% today with major holdings Agnico Eagle Mines AEM +3.25% ▲ up 3%, Newmont Mining NEM +3.08% ▲ up 2.94%, and Wheaton Precious Metals WPM +4.69% ▲ up 3.95%.

The spot gold price was down 1.72%, but this is an improvement on the almost 18% dip seen in the last month as the U.S., Israel and Iran exchanged drones and missile fire. A worrying proportion of that was directed at energy facilities in the Gulf and Iran, with shipping in the Strait of Hormuz also under fire.

The resultant lift in oil prices, the risk of higher inflation and the prospect of interest rate hikes made the safe haven of gold look less secure.

However, President Trump’s assertion today that discussions between the U.S. and Iran had been positive raised hopes that an end to the conflict was near.

“A turnaround in precious metals markets also helped lift gold mining outfits Fresnillo and Endeavour. Gold hasn’t demonstrated its safe haven qualities in the way many might have expected during hostilities in the Middle East due to strength in the dollar and a perception that interest rate hikes are back on the agenda,” said Dan Coatsworth, head of markets at AJ Bell.

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