Gold Smash Records At $3,700 As Analysts Say This Rally Is Just The Beginning Of A New Cycle For Precious Metals And Mining Stocks
Rishabh Mishra 1 year ago
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Gold soars to a record high near $3,700. Is it a bubble? Experts say no, pointing to undervalued mining stocks as the next big opportunity.
Gold prices are surging to unprecedented levels, with spot gold briefly hitting a new record high of $3,699.57.
Surge Is Just The Beginning Of A Cycle
While the rally has some questioning if a bubble is forming, market strategist Otavio Costa of Crescat Capital firmly asserts that this is “not a bubble,” particularly when looking at the gold mining sector.
Costa highlights that the ratio of junior to senior mining stocks “is still 54% below its 2010 peak,” suggesting the industry is “just at the beginning of this cycle.”
We've just returned from a week packed with meetings with mining companies and investors…
— Otavio (Tavi) Costa (@TaviCosta) September 15, 2025
And the most common question I heard:
"Are mining stocks in a bubble?"
Anyone seriously asking this hasn't lived through — or studied — a real mining cycle, in my view.
The ratio of… pic.twitter.com/VdkEJ99AFo
Mining Stocks Lead Gold Prices Higher
Veteran economist Peter Schiff declared that “Gold is at a new record high,” with the mining stocks “finally leading the metals higher.”
Schiff enthusiastically stated, “This bull market is firing on all cylinders, yet hardly anyone is aboard for the ride. Just the way I like it.”
Gold is at a new record high, trading just under $3,680. Silver is now above $42.50. Mining stocks are finally leading the metals higher, with the $GDXJ up over 2.5%. This bull market is firing on all cylinders, yet hardly anyone is aboard for the ride. Just the way I like it.
— Peter Schiff (@PeterSchiff) September 15, 2025
Here’s a list of a few gold miner stocks and how they have performed.
| Stocks | YTD Performance | One Year Performance |
| Harmony Gold Mining Company Ltd. (NYSE:HMY) | 77.24% | 49.11% |
| Perpetua Resources Corp. (NASDAQ:PPTA) | 62.99% | 101.00% |
| Eldorado Gold Corp. (NYSE:EGO) | 79.92% | 58.95% |
| Sandstorm Gold Ltd. (NYSE:SAND) | 112.78% | 94.71% |
| Iamgold Corp. (NYSE:IAG) | 104.48% | 108.97% |
| Skeena Resources Ltd. (NYSE:SKE) | 99.57% | 116.18% |
| Kinross Gold Corp. (NYSE:KGC) | 135.43% | 145.36% |
| Newmont Corporation (NYSE:NEM) | 106.83% | 49.37% |
| Royal Gold Inc. (NASDAQ:RGLD) | 45.26% | 38.55% |
| Anglogold Ashanti PLC (NYSE:AU) | 175.68% | 136.52% |
Any Dip In Gold Is A ‘Buying Opportunity’
The yellow metal’s ascent comes as the U.S. Dollar Index spot dropped to a seven-week low, currently around 96.9870.
Darshan Desai, CEO of Aspect Bullion & Refinery, noted that “gold prices surged to another record high as the US Dollar dropped to its lowest level in seven weeks,” with markets anticipating a Federal Reserve rate cut.
Desai adds, “any short-term dip may present a buying opportunity, as lower prices could offer an attractive long-term entry point.”
Yellow Metal Having The Best Year In Over 4 Decades
The bullish sentiment is echoed across the board. Charlie Bilello points out that “Gold is on pace for its best year since 1979, up over 40% in 2025,” reinforcing the significant momentum.
Gold is on pace for its best year since 1979, up over 40% in 2025.
— Charlie Bilello (@charliebilello) September 16, 2025
Video: https://t.co/G7E3eKLx1a pic.twitter.com/EkG1eiKc6j
What Do Technical Charts Say About Gold?
Adding a technical perspective, Rashad Hajiyev, the Founder of RM Capital Consulting, observed that “Gold broke out from its short-term consolidation yesterday and looks like it is headed straight to my $3.9K target. Could happen within 2-3 weeks…”
This technical breakout further validates the current upward trend, painting a picture of continued gains for gold.
Gold broke out from its short term consolidation yesterday and looks like it is headed straight to my $3.9k target. Could happen within 2-3 weeks… pic.twitter.com/Yw0aJzZZon
— Rashad Hajiyev (@hajiyev_rashad) September 16, 2025
Price Action
The confluence of a weakening dollar, expectations of dovish central bank policy, and strong technical indicators, alongside the undervalued mining sector, suggests that gold’s rally may indeed have substantial room to run, as Otavio Costa and other experts contend.
Gold Spot US Dollar rose 0.48% to hover around $3,698.74 per ounce. Its last record high stood at $3,699.57 per ounce. It has gained 23.86% in the last six months and 43.13% over the year.
Here are some gold and gold miner-linked ETFs for investors to consider.
| Gold Miner ETFs | YTD Performance | One Year Performance |
| VanEck Gold Miners ETF (NYSE:GDX) | 99.43% | 76.69% |
| VanEck Junior Gold Miners ETF (NYSE:GDXJ) | 104.08% | 86.75% |
| Gold ETFs | YTD Performance | One Year Performance |
| Franklin Responsibly Sourced Gold ETF (NYSE:FGDL) | 38.66% | 42.76% |
| Goldman Sachs Physical Gold ETF (BATS:AAAU) | 38.23% | 42.23% |
| GraniteShares Gold Trust (NYSE:BAR) | 38.38% | 42.45% |
| VanEck Merk Gold ETF (NYSE:OUNZ) | 38.14% | 42.24% |
| SPDR Gold Trust (NYSE:GLD) | 38.09% | 42.01% |
| iShares Gold Trust (NYSE:IAU) | 38.23% | 42.26% |
| SPDR Gold MiniShares Trust (NYSE:GLDM) | 38.34% | 42.42% |
| abrdn Physical Gold Shares ETF (NYSE:SGOL) | 38.24% | 42.34% |
| iShares Gold Trust Micro (NYSE:IAUM) | 38.42% | 42.51 |
| Invesco DB Precious Metals Fund (NYSE:DBP) | 37.38% | 34.55% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 0.13% at $661.80, while the QQQ advanced 0.20% to $592.87, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga
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