The Week

GDX.US rose 1.71% this week to close at $89.28, while the S&P 500 gained 1.15%, leaving the ETF about 0.56 percentage points ahead of the benchmark. The daily bars show a week of two halves. Monday opened at $87.84, dipped to $85.99 and closed at $87.42. Tuesday bounced to $88.22. Wednesday posted the week’s low of $84.36 before settling at $85.46. Thursday recovered to $86.72. Friday pushed higher on stronger volume, touching the weekly high of $89.63 and finishing at $89.28. The 6% weekly range reflected a pull-back followed by a recovery.

Sector News

The week for gold miners was shaped by competing macro signals. US Treasury yields kept climbing: the 10-year yield hit 5.35% on Wednesday, the highest since April 2002, while the average 30-year auction yield reached its highest since August 2000. That pressure weighed on bullion and gold miners through mid-week. By Friday, a softer US dollar helped gold prices edge up, lifting miner stocks. On the corporate side, J.P. Morgan, UBS and CIBC maintained buy ratings on names including Newmont, B2Gold and Kinross Gold. Newmont outperformed some peers during Friday’s session. Deal activity remained active as well: StrikePoint completed its acquisition of the Northumberland gold project from Newmont subsidiaries, and Franco-Nevada became a significant shareholder of Kenorland Minerals.

The Week Ahead

Next week turns on US inflation data and the rate outlook. On Wednesday 14 October, the US releases CPI and core CPI, with headline CPI at a prior 3.4% and forecast 3.7%, and core CPI at a prior 2.4% and forecast 2.5%. The monthly core reading carries a prior of 0.3% and a forecast of 0.2%. With Treasury yields elevated and Fed officials leaning toward further hikes, the CPI print will be the key input for the dollar and gold direction. Tuesday 13 October also brings the NFIB small business optimism index and existing home sales on an annualised basis. For gold miners, the main question is whether inflation data eases rate expectations and whether the dollar extends Friday’s softness.

In Short

GDX.US’s choppy advance this week sits between two forces. On one side, rates continue to bite: Treasury yields hit multi-year highs and the Fed minutes showed most participants saw another hike as likely by year-end, pressuring a non-yielding asset like gold. On the other, the sector’s fundamentals retain support: several brokers maintained or initiated buy ratings on major miners, Newmont traded firmly, and gold responded quickly to dollar weakness. The latest daily capital snapshot shows net buying by large-lot flows, yet weekly average turnover ran about 14% below the median, suggesting volume has not confirmed the move. The variable to watch is whether inflation data and rate expectations soften, and whether gold holds above its prior lows.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.