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| By Sean Brodrick |
Gold and gold miners rallied into August, then slumped hard into October, as surging bond yields sent the U.S. dollar higher.
Don’t let the pullback shake you out.
I’m watching three powerful bullish forces lining up on the other side.
Force #1: China’s Back!
Chinese markets reopened after the Oct. 1 to 7 Golden Week holiday.
Historically, Golden Week marks the beginning of China’s peak gold-buying season.
The World Gold Council confirms this period usually marks stronger sales.
Force #2: Central Bank Buying
Central banks worldwide bought a net 39 tonnes of gold in August, according to the World Gold Council.
China led the charge, buying 20 tonnes in August — its biggest monthly purchase since October 2023.
That marked its 22nd straight month of buying.
Poland bought another 8 tonnes, Uzbekistan 8 tonnes, Kazakhstan 7 tonnes and Turkey 3 tonnes.
Central banks aren’t day traders.
They’re diversifying reserves away from currencies and sovereign debt.
And that sustained demand helps support the market even when short-term investors are selling.
Force #3: Gold Miners Are Money Machines
Industrywide all-in sustaining costs averaged $1,785 an ounce in the first quarter.
Yet average margins hit a record $3,076 an ounce — up an astonishing 134% year over year.
Taking an example out of the Wealth Megatrends portfolio, Newmont (NEM) generated $5.35 billion in free cash flow in the first six months of 2026, up 83% from a year earlier.
Yet miners still look surprisingly cheap.
The top 25 stocks in the VanEck Junior Gold Miners ETF (GDXJ) recently traded at an average trailing P/E of just 16.1 — their cheapest valuation in at least 41 quarters.
Meanwhile, their Q2 operating cash flow jumped 36% year over year.
So, sure, the pullback in gold and miners wasn’t fun.
But China kicked off its strongest gold-buying season, central banks are buying and miners are gushing cash.
Those are exactly the forces that can turn a correction into the launchpad for gold’s next leg higher.
The Easy Way to Put Gold to Work
The three forces I just laid out are bullish for gold and miners.
There is an easy way for you to buy gold.
For simple, direct exposure to the metal itself, I like the SPDR Gold MiniShares Trust (GLDM).
It owns physical gold and is designed to track bullion prices, less expenses.
The big attraction is efficiency. GLDM charges just 0.10% a year, compared with 0.40% for its much larger cousin, SPDR Gold Shares (GLD).
That may not sound like much, but if gold remains a long-term holding — as I believe it should — lower expenses leave more of the metal’s gains in your pocket.
GLDM also gives you something physical bullion doesn’t: instant liquidity.
You can buy or sell it during the trading day just like a stock, without worrying about dealer premiums, storage or insurance.
And right now, the recent pullback is giving us a better entry point than we had a few months ago.
Bond yields and the dollar may keep gold choppy in the short run. But the longer-term forces supporting gold haven’t disappeared.
Corrections are what give us opportunities to build positions before the next move.
But when some of the world’s biggest buyers are accumulating the metal while the companies producing it are minting cash, I want exposure.
And GLDM is one simple way to position yourself for gold’s next move.
And as these three forces light a fire under gold, today’s pullback will look a lot more like an opportunity than a warning.
All the best,
Sean
