Wednesday, 31 May 2017

GDX - a choppy May

The mining sector ETF of GDX settled the day +0.5% at $22.70, which made for a net monthly gain of 2.1%. Price action since February has been choppy, leaning on the weak side. May saw a marginal break of core rising trend, but it was a transient event, and the positive monthly close keeps open the door to far higher levels this summer.

GDX monthly

GDX daily


Suffice to add, its been a choppy few months for the Gold miners, not least as the precious metals have themselves been seeing some swings, also leaning on the weaker side.

A key issue is the USD, which recently saw a break of mid term rising trend. By definition, a weaker USD is inherently bullish for Gold and Silver, and the related miners.

Yours truly is still leaning bullish. Lets be clear though, if the May low (GDX $20.89) is taken out in June (or any time after), it would bode badly for mining stocks and the precious metals.