Miners Soar Amidst Fiscal Fears Driving Gold Higher

Gold mining equities have extended their rally in August, rising 2.3% on Thursday despite spot gold slipping and long-term Treasury yields rebounding.

The VanEck Gold Miners ETF (GDX) was up, while Agnico Eagle Mines (AEM), Newmont (NEM), and Barrick Mining (B) also saw gains.

Despite the increase in 30-year Treasury yields to 5.25%, investors remain concerned about U.S. public debt surpassing $40 trillion and the persistent fiscal pressure, making gold a more attractive hedge.

According to Charlie Morris, chief investment officer at ByteTree, the U.S. government is engaging in multiple major quantitative easing operations, pushing gold prices higher with room for further gains.