“Further afield, analysts have tapped companies from Kinross Gold Corp. to Iamgold Corp. and Australia’s Newcrest Mining Ltd. as names to watch amid expectations that the wave of deals has further to run,” according to Bloomberg.

GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Stock fundamentals like cost deflation across the mining industry, share valuations below long-term average and rising M&A are all supportive of the miners space as well, but those fundamentals could be glossed over if the dollar strengthens.

A slew of fundamental factors support more upside for the group. Those factors include rock-bottom valuations and the potential for increased mergers and acquisitions activity.

“Gold equities have also been boosted by a rebound in bullion. The metal’s impressive December rally has carried over into 2019 as concerns stack up about slowing global growth and holdings in exchange-traded funds continue to expand,” according to Bloomberg.

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

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