The VanEck Gold Miners ETF (GDX) has soared 89% this year, outperforming the bullion’s near 35% rise this year.
Analysts believe that gold mining stocks will continue to rally this year, despite recent outperformance compared to bullion, after years of tepid growth.
The VanEck Gold Miners ETF (GDX) has soared 89% this year, outperforming the bullion’s near 35% rise this year. Shares of Newmont, the world’s largest gold miner, have nearly doubled, while those of Barrick have surged 72%.
“The outperformance of miners relative to the metal is something that really only started in earnest in 2025,” said investor Tim Seymour at CNBC, adding that mining stocks have consistently lagged behind gold prices over the past few years, primarily due to inflation.
“Part of the outperformance here is the operational leverage in their business,” Seymour added while noting that gold miners have managed to rein in costs. “Inflation for global miners of everything, but for gold miners, maybe even more so.”
The decline in costs has followed industry-wide efforts to adopt automation due to a labor shortage. In July, Newmont said its all-in sustaining costs, the industry benchmark gauge for expenses, decreased about 4% to $1,593 per gold ounce in the second quarter, compared to the previous three months.
“I think that the market is largely underweight,” Seymour said. Spot gold prices were trading at $3,541 per ounce at the time of writing, slightly below their all-time high of $3,578 on Wednesday.
Retail sentiment on Stocktwits about the VanEck Gold Miners ETF was in the ‘extremely bullish’ territory at the time of writing.
Speaking on similar lines, economist Peter Schiff noted on X, “Many individual names are trading lower as investors take profits. Don’t sell your miners. It’s far too early to take profits.”
Many analysts believe that gold will continue to climb this year after Federal Reserve Chair Jerome Powell hinted at lowering benchmark interest rates last month. The ongoing tussle between the Fed and U.S. President Donald Trump is also aiding bullion prices.
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