Gold companies will shine again?

Shares of gold mining companies are lagging behind this year. The VanEck Vectors Gold Miners ETF (GDX) rose by nearly 7% since the beginning of the year, while the SPDR Gold Shares (GLD) added nearly 8%.
The rising short-term average in VanEck Vectors Gold Miners, however, shows signs of improvement, according to Tony Welch, a strategist at the Ned Davis Group. And while longer-term trends are still not very encouraging, there may be an improvement in short-term prospects for gold mining companies.
In other words, the gold-producing companies may return to their medium-term averages.
This is most likely to aid the well-known recovery in the price of gold. The noble metal recovered from levels of about $1,200 per ounce to levels of about $1,245.
Low gold prices have contributed to the strong demand for physical gold worldwide, another trend supporting the price of the metal.