Gold Stocks Surge as Technology Sector Faces Rebalancing

The bottom of the gold market has passed, and now investors are focusing on what's next for gold and its stocks. One key development is that gold stocks have started to outperform gold itself.

According to various charts, including those comparing GDX (the VanEck Vectors Gold Miners ETF) to gold, it appears that capital may shift away from technology stocks towards gold and gold stocks in the quarters ahead.

The comparison between GDX and a conventional 60/40 portfolio also suggests this rotation. In 2025, GDX broke out of a 12-year-long base against the 60/40 portfolio, implying a move away from conventional allocations and towards gold stocks.

Another key chart to watch is the one comparing the Magnificent 7 (a group of large-cap technology companies) to gold. The ratio between these two assets has work to do before testing major resistance, but a breakout would confirm a shift in market leadership.