The Fed’s reluctance to raise interest rates is contributing to a weaker dollar, which has also helped support USD-denominated gold bullion. Consequently, a weaker USD makes alternative assets like metals more attractive.

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“Even if gold prices do not see substantial upside from here but manage to find support at around $1300-$1350 an ounce, it will be positive for mining companies. Remember during the last three years, gold mining companies have significantly reduced their costs as I had noted in an article a few months ago. This means that margins will remain strong even if gold does not see upside from current levels,” adds Seeking Alpha.

For more information on the gold market, visit our gold category.

VanEck Vectors Gold Miners ETF