GDXJ Stock Recent News
GDXJ LATEST HEADLINES
The rally in the GDXJ Junior Gold Miners ETF is overextended relative to the price of gold, which itself looks at risk from high real bond yields. While the GDXJ remains low relative to its historical price, this is not an indication of undervaluation. Valuations are outright expensive at current gold prices.
Gold looked like toast after the Nov. 2 Fed meeting. The continuous futures contract stopped falling at the right level.
Gold miners have been an awful spot to allocate to for more than two years, despite high inflation. Rising real yields have been a recent headwind, but price action suggests now might be a favorable time to put cash to work in the space.
Precious metals-related exchange traded funds rallied on Thursday after the Federal Reserve's less aggressive stance in the face of weakening U.S. economic data helped support the case for hard assets. Among the better-performing non-leveraged ETFs of Thursday, the ETFMG Junior Silver Miners ETF (NYSEArca: SILJ) advanced 3.
When we last covered JNUG and GDXJ, we highlighted why we did not go long either. The USD bull crushed both and actually went further than even we anticipated.
The GDXJ tracks the performance of the MVIS Global Junior Gold Miners Index, a market-cap-weighted index of global gold- and silver-mining firms, focusing on small and mid-caps. After a 38% rally off the January lows fueled by rising gold prices, the GDXJ has since given back all of its gains as gold prices have come under pressure.