Tuesday 2 April 2013

GDX - Gold miners collapsing

With the precious metals continuing to collapse, the miners are seeing a similar pattern of destruction. The Gold miners ETF - GDX, closed -4.1% @ $35.92. Near term trend is extremely weak, and GDX looks set to break <30 by the late spring.


GDX, daily



GDX, monthly


Summary

With Silver failing to rally, and gold now also seeing significant losses, the Gold miners are seeing pretty severe declines.

We're now back to the lows of March, and with the daily charts as they are, it looks like we'll break new lows.

Next big level for GDX is $30, which could even be hit later this month..if Silver/Gold unravel in the days ahead.


Dr Copper was right again.

On any basis, Copper was - in retrospect, the key warning of trouble.


Copper broke first...Silver is following close behind...and Gold is also now seeing big daily falls.

GDX is clearly still in a massive multi-month decline..and if the wider equity market also sees some level of correction across April/May, there is no reason to expect a rebound in either the miners or the precious metals this side of the spring.