Precious mining stocks could be due for a big bounce in 2024 after largely sitting out last year's rally for stocks, according to technical analyst Carter Worth. The price of the VanEck Gold Miners ETF (GDX) rose 8.2% in 2023, which lagged not only the broader stock market but also the price of gold , which climbed more than 13%. The VanEck Junior Gold Miners ETF (GDXJ) performed even worse, rising just 6.3%. GDX 1Y mountain Gold mining stocks and ETFs underperformed the broader market in 2023. Worth, the founder and CEO of Worth Charting, said on CNBC's " Power Lunch " on Tuesday that miners could finally have a long overdue bounce in 2024. "Sometimes there's something that's so out of favor, so under-owned — you can use any expression one wants — that it's right to, I think, take the road less traveled. Miners are perennial underperformers," Worth said. The underperformance to the price of gold, which is a key factor in whether the mining companies can turn a profit, creates the potential for a "catch up" move, Worth said. "The spread right now with gold itself is pretty extreme, and we think gold is going a lot higher," he added. Worth said he would use the GDX fund to do this trade, given its liquidity. The fund has about $13 billion in assets under management and regularly sees daily trading volume above 20 million shares, according to FactSet. The top holdings of GDX include Newmont Corporation , Barrick Gold and Agnico Eagle Mines . The fund has an expense ratio of 0.51%.
