Monday, 7 November 2016

GDX - miners dig deep

Whilst the broader equity market saw very powerful pre-election gains, the gold/silver miners were under massive downward pressure, as gold/silver prices plunged. The ETF of GDX settled -4.0% @ $24.07. There is clear resistance around $26... and until that is broken above, the mid term outlook remains bearish.

GDX, daily

GDX, monthly


Suffice to add, the stronger USD (+0.7% in the DXY 97.70s) sure didn't help today, with gold/silver prices opening significantly lower, and broadly cooling across the day.

Naturally, the mining stocks followed.... despite strong gains in the main market.

The result of this week's election does offer HIGH threat of a whipsaw back upward in the metals/miners... but as noted... the mid term outlook is still bearish unless upside resistance is broken AND held above.