While gold prices (GCM24) are hovering near all-time highs, gold mining stocks have trailed the precious metal's performance by a wide margin. Typically, the performance of gold mining stocks is tied to the price of the yellow metal. But in the current market environment, investors remain worried about rising interest rates and inflation, as these headwinds tend to weigh heavily on capital-intensive mining companies.
However, the relative underperformance allows you to buy quality mining stocks at a discount and derive outsized gains when market sentiment improves. New Gold (NGD) is one cheap gold mining stock to scoop up right now.
