For investors looking for momentum, VanEck Vectors Gold Miners ETF (GDX Quick QuoteGDX - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 101.7% from its 52-week low price of $16.18/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

GDX in Focus

This ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index, which is intended to track the overall performance of companies involved in the gold mining industry. It has AUM of $12.85 billion and charges 52 basis points (bps) in annual fees.

Why the Move?

The coronavirus pandemic is sparking fears of a global economic recession among investors as the outbreak is disrupting global supply chains followed by shut down of economic activities. The market participants also seem to be worried about the pandemic’s impact on corporate earnings. In the wake of the current scenario, investors are rushing to safe-haven assets like gold. Also, low oil prices can be a positive for mining companies as they spend a considerable amount in energy-related production. All these factors are making funds like GDX attractive.

More Gains Ahead?

It seems like the fund will remain strong with a positive weighted alpha of 97.00, which gives cues of further rally.

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