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home / news releases / NEM - GDX: Don't Get Greedy


NEM - GDX: Don't Get Greedy

Summary

  • After adding to my GDX positions near the September lows, the strong rally seen since then appears overdone, and I am no longer bullish.
  • While rising gold prices and falling oil prices should support profitability, valuations are now expensive on most metrics.
  • The rally in gold prices is out of line with trends seen in US real bond yields, suggesting the metal is the most overvalued it has been since August 2020.
  • A gold price correction would kick the legs from under the GDX's rally, which is already overdone based on current gold prices.

For further details see:

GDX: Don't Get Greedy
Stock Information

Company Name: Newmont Mining Corporation
Stock Symbol: NEM
Market: NYSE
Website: newmont.com

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