Additionally, there is at least one positive fundamental catalyst that potentially bodes well for gold miners ETFs going forward: Peak production of gold has likely come and gone, perhaps indicating that supply will dwindle, thereby boosting bullion prices.

The idea of peak gold is the fact “the fact that gold mine supply seems to have peaked after years of crushingly low bear-market prices. You can’t turn on mines with the flip of a switch. It takes years. So, tight supply squeezes prices higher,” according to ETF Daily News.

Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets. However, traders lose interest in gold when rates rise since the bullion does not produce a yield.

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

Tom Lydon’s clients own shares of GLD.