The VanEck Gold Miners ETF (GDX) is an exchange-traded fund (ETF) formed during the 2006 gold bull market as a way for investors to gain convenient exposure to some of the largest mining companies in the world.
Given how the world’s biggest commodity has performed through most of 2024 and in the initial months of 2025, it should come as no surprise that GDX experienced significant growth and even witnessed stronger moves than the yellow metal.
Indeed, in the last 12 months, gold rallied 45.93% while the ETF is up 57.10%, though the higher volatility proved to go both ways. In the last six months, the commodity outperformed the fund, rising approximately 12% compared to GDX’s 5%.
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By press time on February 20, Gold Miners appeared poised for even greater gains as the fund has formed its first golden cross chart pattern in 2025, and the first since April 2024.
Why a GDX rally might be imminent
A golden cross forms once a short-term moving average (MA) – usually the 50-day MA – soars above a long-term MA – usually the 200-day – and is generally read as a strong bullish signal.
The last time GDX enjoyed the positive pattern, it rapidly rallied more than 30%, and, indeed, the previous golden cross kickstarted the ETF’s surge that lasted from April until November.
If GDX replicates its previous golden cross rally – +30% – its current price of $42.13 could rise toward $55, turning a $1,000 investment into approximately $1,300.
The GDX’s golden cross also emerged at a time when gold is soaring as the yellow metal recorded multiple new all-time highs (ATH) and has, indeed, slowly been climbing toward the long-awaited and arguably psychologically important $3,000 level.
At its press time price of $2,954, the world’s largest commodity by market capitalization is but a 1.56% rally from hitting the target.
Investors should be cautious, as a rapid and potentially sharp correction may occur once $3,000 is reached. This is because traders often take profits when a long-anticipated price milestone is achieved, as there is frequently a pause once a psychological resistance is breached before the market finds its next direction.
Will the Gold rally continue in 2025?
Additionally, gold has been driven higher by geopolitical uncertainties in recent years with the press time state of diplomacy – the recent U.S.-Russia negotiations on Ukraine that the E.U. and Ukraine are, apparently, aiming to reject, as well as the frail ceasefire in Palestine – might be making investors especially keen on buying the safe haven asset.
Depending on how the current situation unfolds, gold could become either more or less appealing.
Finally, it is worth pointing out that other factors driving the price of gold higher – the central bank buying spree, hopes for interest rate cuts, and the still-heightened inflation – all remain in play.
Featured image via Shutterstock
