Gold Hits All-Time Highs, Silver Rallies To 2024 Peak As Powell Hints At Fed Rate Cuts: 10 Mining Stocks Moving Wednesday
Portfolio Pulse from Piero Cingari
Gold and silver prices surged to new highs following Fed Chair Jerome Powell's hints at potential rate cuts in 2024, boosting mining stocks and ETFs. The SPDR Gold Trust (GLD) and Invesco DB USD Index Bullish Fund ETF (UUP) experienced significant movements, alongside a rally in mining stocks and ETFs like the VanEck Gold Miners ETF (GDX) and the VanEck Junior Gold Miners ETF (GDXJ).
March 06, 2024 | 5:43 pm
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POSITIVE IMPACT
VanEck Gold Miners ETF (GDX) rose 2.5%, reaching its highest since mid-January, fueled by surging gold prices.
GDX's increase is closely linked to the rise in gold prices, as the ETF holds a portfolio of gold mining companies which benefit from higher gold prices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
VanEck Junior Gold Miners ETF (GDXJ) surged 2.4%, mirroring trends in the gold market and GDX's performance.
GDXJ's performance is directly influenced by the overall gold market and the performance of GDX, as it includes smaller gold mining companies that also benefit from higher gold prices.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
SPDR Gold Trust (GLD) soared 0.8% to $2,150/oz, surpassing its previous peak, influenced by Powell's hints at rate cuts.
GLD's price increase is directly tied to Powell's statements on potential rate cuts, which traditionally boost gold prices as investors seek safe-haven assets.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 90
NEGATIVE IMPACT
Invesco DB USD Index Bullish Fund ETF (UUP) fell by 0.5%, marking its worst session in 2024, amid Powell's rate cut indications.
UUP's decline is a direct consequence of Powell's hints at easing monetary policy, which typically weakens the dollar as lower interest rates decrease foreign investment appeal.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90