Gains in Gold Miners Outpaces Rise in Bullion Prices (GLD) (GDX)

SPDR Gold Shares ETF (NYSE: GLD) is trading slightly higher intraday on Tuesday, a few days ahead of a Fed policy announcement. On Thursday investors expect the FOMC to announce plans to stimulate the economy through additional quantitative easing, and as a result the spot price of gold is trading at $1730 per ounce, levels not seen since February of this year.

Overall mining stocks haven't kept pace with the precious metal, a trend Barrick (NYSE: ABX) CEO Jamie Sokalsky blames on a lack of discipline in the way mining companies invest capital. However, lately that trend has reversed.

In the past 30 days, Market Vectors Gold Miners ETF (NYSE: GDX) has gained 11 percent compared to SPDR Gold Shares (GLD) and iShares Gold Trust (NYSE: IAU), which have gained just under 7 percent.

An increase of $100 in the price of gold adds $500 million to Barrick's earnings and cash flow, so there is no doubt Sokalsky and other mining company CEOs have at least one eye on gold prices. In Sokalsky's view gold could rise above $2000 per ounce in the next two years.

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