Gold Mining Stocks Soar as Bullion Reaches Two-Month High

Gold mining stocks surged in one of their strongest weeks on record, with benchmark funds rising more than 20% as bullion climbed to its highest level since mid-June. The VanEck Gold Miners ETF (GDX) jumped 21.09% over five days to $89.73, while the VanEck Junior Gold Miners ETF (GDXJ) gained 22.42% to $116.78.

Major producers like Agnico Eagle Mines and Newmont also saw significant gains, with Agnico rising 22.92% to C$250.17 and Newmont advancing 20.55% to $112.97. The rally highlights the miners' leverage to gold prices, as revenue can increase rapidly when bullion advances while operating costs adjust more slowly.

The unexpected contraction in US employment data contributed to gold's breakout, with the metal jumping over 2% on Friday to about $4,353 an oz. Junior miners outpaced their larger peers, a pattern often seen during sharp increases in gold prices, as smaller and higher-cost producers have greater operational leverage.