If someone were to tell you that NVIDIA Corp. NVDA and its peers, as represented by the iShares Semiconductor ETF SOXX, didn’t lead the pack in the first week of March, you might find it hard to believe.

However, an old-economy industry, far distant from the AI hype, significantly outperformed chipmakers.

As Federal Reserve Chair Jerome Powell addressed the U.S. Congress regarding the possibility of rate cuts contingent upon sustained declines in inflation, an asset quietly ascended to historic heights: gold.

The precious metal surged past $2,160 per troy ounce this week, marking eight consecutive sessions of gains. This significant movement didn’t escape the attention of value-oriented investors, who flocked to one of the most affordable equity industries.

The VanEck Gold Miners ETF GDX, a gauge for the performance of the gold mining industry, saw an impressive surge of 15% since late February, outpacing the rise of the AI-related semiconductor sector during the same period.

Chart: Gold Miners Outperformed Semiconductors Since Late February, As Gold Hits Record Highs

Amidst growing investor concerns over expensive valuations and the possibility that the stock market has surged too rapidly, the allure of gold miners becomes particularly pronounced due to their comparatively more affordable valuations.

Currently, the VanEck Gold Miners ETF boasts a forward price-to-earnings ratio of 18x, which is cheaper than the S&P 500’s 21x and the semiconductor industry’s 30x.

The attractive valuations of gold miners have likely captured the interest of value-seeking investors, who aim to steer clear of sectors that have seen their prices surge beyond analysts’ upward revisions of future earnings.

Since mid-February, the VanEck Gold Miners ETF has witnessed inflows of over $350 million, effectively reversing the outflows seen earlier this year.

If fundamentals offer significant insights, technical signals may further reinforce the onset of a bull market.

This week, the gold mining stock gauge surged above both the 50-day and the 200-day moving averages, with the two now forming a so-called golden cross pattern.

Chart: Golden Cross Appears On Gold Mining Stocks

March’s Top Performing Mining Stocks And Their Current Valuation

Name	Price Chg. % (MTD)	P/E (NTM)	P/E (LTM)
Genesis Minerals Limited GSISF	25.33%	31.3x	–
Torex Gold Resources Inc. TORXF	23.24%	10.5x	5.5x
Coeur Mining, Inc. CDE	22.01%	–	–
OceanaGold Corporation OCANF	19.56%	9.0x	16.9×
AngloGold Ashanti plc AU	18.75%	12.0x	238.3x
DRDGOLD Limited DRD	18.67%	12.0x	9.5x
Perseus Mining Limited PMNXF	17.95%	7.9x	6.0x

Read Now: EXCLUSIVE: Value Investor Is ‘Very Happy To Take Advantage’ Of Top Gold Miner At Historical Discount

This image was generated using artificial intelligence MidJourney