Volatility continues to characterize the commodities markets, and we have seen a downside correction in the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) of about 17.3% since August 5th. Of course, this negative activity follows a tremendous surge in bullish momentum on longer-term time horizons. Since March 13th, GDXJ has generated gains of more than 183%, and we expect safe haven buying of precious metals to continue against rising macroeconomic uncertainties (such as the recent reports of coronavirus in the U.S. government). Overall, we believe that this environment should help the junior gold miners maintain positive momentum in upcoming earnings reports, and we rate GDXJ as an instrument that is likely to “outperform” based on its broadly diversified exposure to a sector of the market that is benefitting from an acceleration in momentum.
Source: Author via Tradingview
The VanEck Vectors Junior Gold Miners ETF is associated with an expense ratio