Friday, 23 February 2018

GDX - miners cooling with metals

The gold miner ETF of GDX settled the week on a positive note, +1.1% at $21.97, but that still resulted in a net weekly decline of -2.4%. Near term outlook is offering renewed upside. Things turn decisive if Gold >$1400, which would offer hyper upside in GDX to $50 by mid 2019.

GDX weekly

GDX daily


Suffice to add, its been a choppy few weeks. Price action from early 2017 has been broadly choppy. Things turn decisively bullish >26.00, or bearish <20.00. The former looks far more probable.

Yours truly continues to lean toward the inflationary outlook/scenario. Copper/WTIC are both m/t bullish, and gold/silver should eventually follow. If correct, the miners would no doubt follow.

Two of the leading miners...

Barrick Gold (ABX), monthly

Recent earnings were mixed. Technically, short/mid term price action remains outright bearish. Its arguably empty air to psy' $10.00, which is around another 20% lower.

Newmont Mining (NEM), monthly

Recent price action is choppy, but Newmont is far stronger than many miners - not least Barrick Gold.

To be clear, I like both NEM and ABX for the long term. Notably, the two stocks are the biggest components of GDX. 

Yours, bullish Gold Rush