Friday, 10 January 2014

GDX - miners end the week on a positive note

With Gold and Silver commodity prices continuing to rally - although still below old broken support, the Gold miners ended the week on a reasonably positive note. The Gold miner ETF of GDX, settled +3.4% @ $21.99 - right at upper (descending) channel resistance.

GDX, daily

GDX, monthly


The broader trend for the miners remains highly dependent upon spot Gold & Silver prices.

As things are, I still expect Gold to eventually test..if not briefly break, the giant psy' level of $1000. If that is the case, the miners are going to remain pretty low, no matter how oversold they might currently be argued to be.

All things considered, there still looks to be a reasonable chance of GDX falling to the 2008 low in the $15s.

Further, if my main market outlook - for a summer/early autumn correction of around 20% turns out to be broadly correct, then the mining stocks will remain under added downward pressure, at least until Q4 of this year.