Tuesday 31 May 2022

Miners still struggling

The gold miner ETF of GDX saw a net May decline of -$3.26 (9.3%) to $31.73, the sector impacted by weak gold/silver, but also the broader equity market.

GDX, monthly

 


Summary

The miners saw an early May high of $36.17, but cooled back to settle powerfully lower at $31.73. I would note the 10MA at $32.51, which was settled below, as the m/t bullish trend has been broken. Monthly momentum has stalled just under the key zero threshold. Next target of the Aug'2020 high of $44.76 looks out of range until at least late summer.
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Three of the key miners...

Newmont (NEM), monthly 

 

 

Newmont saw a net May decline of -$5.00 (6.9%) to $67.85. I would note the monthly 10MA at $61.52, which was settled above. Monthly momentum weakened, if remaining moderately positive.
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Barrick Gold (GOLD), monthly

 


Barrick Gold cooled back to settle -$1.61 (7.3%) to $20.49. Momentum has turned back to negative. A push above the Aug'2020 high of $30.47 will likely require Gold  >$2100.
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First Majestic Silver (AG), monthly

 


First Majestic saw a net May decline of -$2.32 (22.6%) to $7.97. April's bearish engulfing candle played out. Silver printing the $20s, and the m/t broken main market sure isn't helping.

Of the three, yours truly favours NEM, if only as its more resilient than the sector.

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