Gold Price Gap Widens Between Majors and Miners

Gold is trading near $4,270, but VanEck Gold Miners ETF (GDX) has not reflected this price increase, sitting about 22% below its 52-week high of $117.16.

The gap between gold prices and the performance of GDX is a key reason to own the fund, and it remains wide. A related VanEck product, the Junior Gold Miners ETF (GDXJ), has historically closed this gap.

GDX holds a mix of major mining companies, including Newmont, Agnico Eagle, and Barrick, which have mature production profiles, dividend commitments, and hedging programs that limit their ability to pass through higher gold prices.