Gold Breaks Above $2,110, Inches Closer To Record High, With Rallying Mining Stocks

Gold prices, tracked by the SPDR Gold Trust GLD, edged above $2,110 per troy ounce on Monday, poised to achieve a record close and triggering a significant surge in mining stocks.

This marked the fourth consecutive session of gains for the precious metal, bringing it within 1.4 percent of the all-time high reached during the intraday session on Dec. 4, 2023.

Despite the rise in Treasury yields on Monday, with the yield on the 2-year Treasury note inching up to 4.60%, gold exhibited strength in the market.

Market-implied probabilities for a Federal Reserve interest rate cut remained largely unchanged. Traders currently assign a 65% chance of a rate cut by June, with a total of four rate cuts expected by the end of the year.

According to the latest World Gold Council report, increasing geopolitical uncertainty is a significant driver of gold demand in 2024. Ongoing conflicts, trade tensions, and over 60 elections worldwide are likely to prompt investors to seek gold as a proven safe-haven asset.

Chart: Gold Prices Notch Record Close, Eye All-Time Highs

This surge in gold prices fueled a significant rise in mining stocks.

The VanEck Gold Miners ETF GDX rallied by 4.4% on Monday, building on the momentum from Friday’s 3.7% surge.

The gauge has effectively surpassed the 50-day moving average, setting its sights on testing the resistance indicated by the 200-day moving average at $28.79.

Meanwhile, the Sprott Junior Gold Miners ETF SGDJ soared even higher by 5.3%, following a 4% leap on Friday.

Chart: Gold Miners Rally After A Double Bottom In February, Break Above 50-Day Average

Monday’s Best-Performing Gold Mining Stocks

The table below displays Monday’s top-performing gold mining stocks included in the Sprott Gold Miners ETF SGDM.

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