by Gerardo Del Real
The first quarter has seen robust gains in the gold space and in the better junior gold mining names.
Both the Market Vectors Gold Miners ETF (NYSE: GDX) and the Junior Gold Miners ETF (NYSE: GDXJ) closed the quarter near 52-week highs.
The 16% gain for gold in the first quarter was the biggest since 1986, although the bulk of those gains happened in the month of February. Silver has traded up about 9% from last year’s close.
Bloomberg reported that hedge funds are the most bullish on gold since January of 2015. Funds are fickle and there are several reasons to be cautious in the near term. I believe funds have started locking in gains and a pullback is already underway.