Gold Mining ETFs Surge as Bullion Breaks $5,000 Barrier

iShares MSCI Global Gold Miners ETF US4642863355

The global gold mining sector is experiencing a powerful rally, propelled by the precious metal itself shattering the critical $5,000 per ounce threshold. This surge is fueled by a combination of a weakening US dollar and growing market expectations for interest rate cuts, casting a spotlight on exchange-traded funds (ETFs) that track major miners.

On Monday, spot gold prices advanced 1.4% to reach $5,029 per ounce. Silver demonstrated even stronger momentum, posting a gain of 2.5%. Analysts point to the US dollar's decline to its lowest point in nearly a week as a primary catalyst. A softer greenback enhances the appeal of dollar-denominated gold for investors holding other currencies.

Furthermore, the market is increasingly pricing in a shift in monetary policy from the US Federal Reserve, with a potential rate cut anticipated for June 2026. Market strategists suggest that if this trend persists, a climb toward $5,300 per ounce is a plausible scenario. On the downside, the $4,800 level is currently viewed as a solid floor of support. The sustainability of this move faces its next major test with the upcoming release of key US employment data.

Agnico Eagle Mines: A Bellwether in Focus

The performance of the iShares MSCI Global Gold Miners ETF is heavily influenced by its largest constituents. Shares of Agnico Eagle Mines, a top holding, gained 3.8% to trade at $196.60. The company is seen as a key indicator for sector sentiment, with investors keenly awaiting its quarterly financial report scheduled for release on Thursday.

The miner recently reported robust third-quarter 2025 results, with revenue hitting $3.03 billion and net income reaching $1.04 billion. With a market capitalization approaching $99 billion and a price-to-earnings ratio of 28.7, its pre-earnings performance is being closely monitored.

Operational Leverage Amplifies Gains

The rally extends across the industry, showcasing the significant operational leverage miners possess at elevated gold prices. Even smaller producers are benefiting substantially. For instance, Serabi Gold reported record annual production of 44,000 ounces last year and subsequently raised its 2026 output guidance to as high as 57,000 ounces.

This underscores the powerful effect that gold prices above $5,000 have on miner profitability. The sector's momentum was previewed last Friday when the VanEck Gold Miners ETF (GDX), a key industry benchmark, posted a gain exceeding 5%.

The immediate trajectory for the iShares MSCI Global Gold Miners ETF now hinges on gold's ability to consolidate above the $5,000 milestone. Further direction will come from Agnico Eagle Mines' Thursday earnings report, which is expected to provide crucial insights into the current profitability dynamics within the gold mining industry.