Gold Miners ETF Poised to Shine as Gold Price Recovers

The VanEck Gold Miners ETF is poised to catch the light after gold's price recovery. The author of the Finimize Portfolio had previously trimmed its position in the ETF by half on June 10th due to high interest rates and inflation worries, which made gold less attractive as an investment option.

However, since then, some key factors have changed. China's central bank has been buying gold, with a record purchase of 15 tons in June, helping the price hold above $4,000. The US dollar has also weakened against major developed-market currencies, making gold cheaper for buyers using other currencies and boosting demand.

The author believes that these factors, combined with lower oil prices due to hopes of a lasting peace agreement in the Middle East, have contributed to gold's price increase. With the technical picture improving, as evidenced by gold climbing back above its 21- and 50-day moving averages, the author is optimistic about the recovery and has moved the Finimize Portfolio back to a full-sized position in the VanEck Gold Miners ETF.