Thursday delivered the kind of trading session that makes you wonder if we've time-traveled back to the 1970s. Major North American gold miners blasted through record highs as the Federal Reserve's dovish rate-cutting campaign continues to breathe life into one of the most powerful precious-metals rallies in recent memory.
Newmont Corp. (NEM), the world's largest gold miner, surged 6.1% in late-afternoon New York trading, hitting fresh all-time highs and marking its strongest single-day performance since July. The rally extends Newmont's year-to-date gain to a staggering 168%.
Not to be outdone, Barrick Mining Corp. (B) jumped another 4% for its third straight session of gains, also carving out new records. Year-to-date, Barrick has climbed an eye-popping 180%.
The broader industry strength showed up in the VanEck Gold Miners ETF (GDX), which also set new records by rising 3.9% on Thursday. Year-to-date, the fund is up 155%.
Meanwhile, the precious metals themselves continued their relentless march higher.
Gold rose 1% to $2,230 per ounce, while silver absolutely soared 3.2% to $64, shattering previous highs. Year-to-date, gold—tracked through SPDR Gold Shares (GLD)—has climbed 62%.
Silver has surged 119% year-to-date, breaking record highs for the third straight session.
Both precious metals are racing toward their strongest annual performance since the late 1970s, an era defined by stagflation and a crisis of confidence in fiat currencies. For comparison, the S&P 500 index—tracked via the Vanguard S&P 500 ETF (VOO)—has gained a respectable but modest 16% year to date.
The Fed Keeps Cutting
The macro backdrop is driving everything right now.
On Wednesday, the Fed cut rates for the third straight meeting, lowering the federal funds target to 3.50%–3.75%.
The dot plot remained unchanged, still projecting one rate cut in 2026 and two more in 2027. Chair Jerome Powell emphasized patience, saying the central bank is "well positioned to wait and see" how conditions evolve.
The meeting prompted traders to scale back expectations for a January rate cut, with futures pricing nearly an 80% probability of a hold at the next meeting.
But here's where it gets interesting: the Fed also slipped in a notable addition. It plans to begin technical purchases of Treasury bills to support smooth market liquidity.
While not a return to full-blown quantitative easing, the move signals the central bank is prepared to address any structural stresses in the financial system's liquidity. And for gold investors, any hint of expanded Fed balance sheet activity is music to their ears.
What the Experts Are Saying
Otavio "Tavi" Costa, macro analyst at Crescat Capital, said the magnitude of gold's outperformance relative to equities shouldn't be viewed as a short-term blip.
The move fits within "very long-term cycles" defined by macro imbalances that have historically preceded secular bull markets in hard assets.
According to Costa, the U.S. economy is confronting a "trifecta" of problems: debt burdens echoing those of the 1940s, inflation dynamics reminiscent of the 1970s, and valuation excesses comparable to those of late-cycle periods in the 1920s and 1990s.
The combination, he wrote, suggests that the current cycle may still be in its early stages.
Mohamed El-Erian said the continued recovery in gold prices is being reinforced by steady central-bank demand and broader adoption of gold within portfolio-allocation frameworks.
Peter Schiff wrote that the market reaction to the Fed's rate cut underscored gold's role as a preferred store of value during episodes of monetary accommodation.
He criticized Bitcoin (BTC)'s decline on Thursday, pushing back against the notion that the cryptocurrency is "digital gold," asserting that capital flows instead favor traditional precious metals.
In other words, when the going gets uncertain, investors aren't reaching for the newest kid on the block. They're going back to the metal that's held value for thousands of years. And judging by Thursday's action, that trend isn't slowing down anytime soon.
