Gold Miners See New Momentum As Brexit Vote Lifts Gold Prices
Kitco News - Jun 24, 2016
(Kitco News) - Gold’s rally to its highest point in more than two years is putting renewed focus on the mining sector, with many analysts seeing more potential, despite the sector posting nearly 100% gains since the start of the year.
Overnight, as the U.K. voted in favor of leaving the European Union, Comex August gold futures drove to a high of $1,362.60 an ounce, which is having a significant impact on the mining sector.
The mining sector, especially precious-metals miners, is one of the only bright spots in an equity market Friday that is seeing a sea of red. The S&P 500 Index is down 2.73% on the day, with the Dow Jones Industrial Average down 2.68%. The Market Vectors Gold Miners Exchange-Traded Fund (NYSEARC: GDX) is up 5.63% on the day and the Market Vectors Junior Gold Miners ETF (NYSEARC: GDXJ) is up 4.63% on the day; both precious metal ETFs gapped higher at the open, benefiting from higher gold prices.
Currently GDX is up more than 88% since the start of the year and GDXJ is up a whopping 111%.
