Gold Stocks Rally, GDX Climbs 2.4%

GOLD STOCKS NEWS – Gold stocks climbed Monday as the Market Vectors Gold Miners ETF (GDX) advanced $1.30, or 2.4%, to $55.28 per share in morning trading.  Gold stocks and the GDX were lifted by COMEX gold futures, which rallied $16.40 to $1,652.20 per ounce.  The S&P/TSX Global Gold Index, Canada’s leading gold stocks composite, jumped 2.0% alongside the GDX.

Despite this morning’s rise in gold stocks, the GDX has come under significant pressure in recent weeks.  Since reaching an all-time high of $66.98 on September 9th, the GDX has tumbled 17.5% amid broad-based liquidation in the precious metals space.  Furthermore, gold stocks as a group have continued to lag the yellow metal by a wide margin in 2011.  On a year-to-date basis, the GDX is now lower by 10.3% – compared to a 16.3% gain for gold bullion.

News in the gold stocks sector was relatively light on Monday, although a few headlines emerged from companies included in the GDX.  Great Basin Gold (GBG) announced third quarter production of 26,045 gold equivalent ounces at its Hollister Mine in Nevada, a 2.7% decline from the second quarter of 2011.  Due largely to the production decline, shares of GBG fell 1.3% to $1.55 in morning trading.

Seabridge Gold (SA) reported that it entered into an Option Agreement with Orsa Ventures Corp. whereby Orsa can purchase Seabridge’s 100% interest in the Quartz Mountain Project and all of Seabridge’s undivided 50% beneficial joint venture interest in the adjacent Angel’s Camp Gold Property in Lake County, southern Oregon.  SA rose 0.9% to $23.85 per share.

Other notable gold stocks moving higher in concert with the GDX included Yamana Gold (AUY), Goldcorp (GG), and Randgold Resources (GOLD).  Shares of AUY, GG, and GOLD advanced 2.5%, 2.7%, and 2.1%, respectively.