Gold miners surged over the past month, drawing back investors hit by earlier
policy-driven volatility. Geopolitical tensions and fiscal uncertainty helped
the sector record its strongest August since at least 1994: the NYSE Arca Gold
Miners Index rose 33% in August, more than three times the roughly 10% gain in
spot gold, rebounding after a 39% drop from March highs. Markets swung late
August after Fed chair KEVIN WARSH pledged to curb inf, but VanEck Gold Miners
ETF (GDX) posted its largest monthly inflows since February. U.S. Treasury moves
to lower long-term borrowing costs pushed flows into gold and related assets;
with largely fixed operating costs, miners provide leveraged exposure to higher
gold prices.
