Gold Miners ETFs Are Shining Amid Falling Yields, Sliding Dollar And US-Iran Peace Deal Hopes: Here's What You Should Know

Gold miners ETFs rallied sharply on Wednesday as bullion prices rose, driven by optimism surrounding a possible peace agreement between the United States and Iran and a weaker U.S. dollar.

Among some of the major beneficiaries are VanEck Junior Gold Miners ETF (NYSE:GDXJ), iShares MSCI Global Gold Miners ETF (NASDAQ:RING), US Global GO GOLD and Precious Metal Miners ETF (NYSE:GOAU) and VanEck Gold Miners ETF (NYSE:GDX).

Bullion Prices Climb Above $4,700

Gold prices extended gains early Thursday, trading around $4,700 per ounce, as the U.S. dollar slipped, while traders weighed signals that Washington and Tehran could be moving toward a deal to halt the conflict. The move marked a third consecutive session of gains after a 3% jump on Wednesday that pushed it to the strongest level since April 27.

Iran was reviewing a U.S. peace proposal. President Donald Trump also said substantial progress had been made in negotiations, adding to hopes that tensions around the Strait of Hormuz could ease.

Market participants also watched a pullback in U.S. yields and a slide in oil prices, factors that can shift demand for non-yielding assets such as bullion, as reported by Reuters.

The U.S. Dollar Index slid from $98.44 on Tuesday to $98. This drop can make gold cheaper for buyers using other currencies. The 10-year Treasury yield has fallen to 4.35% from 4.43% on Tuesday, reducing the relative disadvantage of holding an asset that does not pay interest.

Peter Schiff suggested "buying the dip" in precious metals in a social media post this week, citing that the markets are mispricing the impact of escalating geopolitical tensions and rising macro risks.

A Quick Look At ETFs

VanEck Junior Gold Miners ETF

GDXJ offers exposure to the small-cap companies involved primarily in the mining for gold and/or silver by tracking the MVIS Global Junior Gold Miners Index. It has $8.4 million in assets under management (AUM) and charges 0.52% in annual fees. The fund trades in an average daily volume of about 4 million shares.

Benzinga Edge Stock Rankings indicate that GDXJ has a Momentum score in the 81st percentile. It maintains a weak price trend in the short, medium and long term.

iShares MSCI Global Gold Miners ETF

With an AUM of $2.8 billion, this ETF tracks the MSCI ACWI Select Gold Miners Investable Market Index (Net). It charges 0.39% in annual fees and trades in an average daily volume of 500,000 shares.

Benzinga Edge Stock Rankings indicate that RING has a Momentum score in the 81st percentile. It maintains a weak price trend in the short and medium term, while maintaining a strong trend in the long term.

US Global GO GOLD and Precious Metal Miners ETF

GOAU follows theU.S. Global Go Gold and Precious Metal Miners Index, charging investors a steep 0.60% in annual fees. It has amassed $182.4 million in AUM and trades in a small volume of 29,000 shares a day on average, indicating a wide bid/ask spread.

Benzinga Edge Stock Rankings indicate that GOAU has a Momentum score in the 64th percentile. It maintains a weak price trend in the short and medium term, while maintaining a strong trend in the long term.

VanEck Gold Miners ETF

GDX tracks the MarketVector Global Gold Miners Index and is the most popular in the gold miner ETF space, with AUM of $26 billion. It has an expense ratio of 0.51% and trades in average daily volume of about 18 million shares.

Benzinga Edge Stock Rankings indicate that GDX has a Momentum score in the 79th percentile. It maintains a weak price trend in the short, medium and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

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