SGDJ ETF

Gold prices have risen over 30% this year. So it's no wonder that miners are headed for a record third-quarter earnings season.

Gold continues to push higher, eyeing the $2,700 price mark. Even if a pullback eventually occurs, demand from countries like China and India could keep the precious metal elevated.

Mining stocks can certainly benefit from gold's run as the precious metal looks to break past the $2,600 per ounce mark. Gold prices are already up about 23% for the year and could keep on rallying with a number of tailwinds behind it.

Gold's rally to new highs is getting assistance from central banks buying and inflows into gold-focused exchange-traded funds. Along with optimism from forthcoming rate cuts, it could see the precious metal continue to see new highs.

Gold prices are up almost 13% for the year. But there's an underlying struggle for miners to continue excavating for the precious metal.

Rising costs of labor and materials amid a high-inflation environment have certainly put added pressure on gold miners to turn a profit. However, rising gold prices are helping to add any future upside in precious gold mining if they stay elevated.

Gold miner stocks have not been performing as well as gold due to high oil prices, which hurt mining margins. The Sprott Junior Gold Miners ETF mirrors the performance of small-cap gold mining companies. SGDJ has a portfolio of small-cap stocks and provides exposure to the junior gold mining sector.

A retreating dollar is exactly what gold needed to put the precious metal back into the investment spotlight. Hotter-than-expected inflation in January pushed the yellow metal below the $2,000 mark.

Gold prices have been in lockstep with stock prices to start the new year, retreating from the highs of 2023. However, price dips in the precious metal offer investors an opportunity to take advantage, as gold still looks appealing in the long-term investment horizon.