Schaeffer's Top Stock Picks for '25

Gold Mining ETF Sees Huge Volume Surge

GDX sports a solid year-to-date lead despite a 10% pullback this quarter

Digital Content Manager
Nov 13, 2024 at 2:43 PM
facebook X logo linkedin


Market volatility stemming from the presidential election, geopolitical conflicts, interest rates, as well as dollar and Treasury yield fluctuations have sent gold prices on a wild ride this year. While the yellow metal was last seen lower amid a surge in the dollar index, it wasn't long ago it was stringing record highs, as traders sought a safe haven from instability. 

VanEck Gold Miners ETF (GDX) was last seen 1.3% lower to trade at $35.63, but still sports a 15.1% year-to-date lead after hitting an Oct. 22, four-year high of $44.29. Though the exchange-traded fund (ETF) is on track for its fourth-straight loss, it has maintained its popularity with options traders. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GDX's 50-day call/put volume ratio of 5.55 sits higher than 82% of readings from the past 12 months, indicating calls are getting picked up at a faster-than-usual rate.

Just yesterday, volume at the January, 2025 42- and 47-strike calls -- the top two options contracts -- totaled 91,033. Positions were being opened at the March 21, 2025 38 call, which points to long-term optimism. It's also worth noting that after GDX's 10% quarterly drawdown, the ETF now sports a 14-Day Relative Strength Index (RSI) of 16.1, deep in "oversold" territory and indicating a short-term bounce could be imminent.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?