VanEck Gold Miners ETF (GDX) is a Compelling Investment Opportunity while Gold Producers are Lagging Behind Gold Price

Global interest in gold has steadily increased since the start of 2020, leading to stronger performance. COMEX gold futures are up more than 13% so far this year, trading above $2,300 an ounce.

Inflationary pressures and central bank gold buying are increasing the appeal of gold mining companies. Speaking at Stanford University in California on Wednesday, Jerome Powell said the latest inflation data, while higher than expected, did not "significantly change" the overall picture.

The VanEck Gold Miners ETF (GDX) represents a compelling investment opportunity in a sector with promising prospects. Since then, GDX has returned 19%. While the S&P 500 has returned 20%, there is evidence that undervalued mining companies have more room to run and could outperform the broader market.