Thursday, 26 September 2013

GDX - still looking weak

With Gold/Silver commodity prices seeing moderate declines, and a relatively weak equity market, the Gold miners saw rather significant declines. The miner ETF of GDX closed -1.5% @ $25.13. There is very soft support at the $24 level, but that looks unlikely to hold.

GDX, daily


Just a brief update on the Gold miners, which are looking rather weak.

With Gold/Silver commodity prices still weak - despite the Fed continuing QE at $85bn, the miners are in trouble.

In terms of price action, GDX looks set to test..and like break under the early August low in the $24s.

Once that goes, the primary target will be a challenge of the late June low of $22.21.

My mid-term outlook for the precious metals remains for significant lower levels (on the order of Gold in the $900s, and Silver in the very low teens). If that occurs, GDX will surely be <$20..if not in mid teens.