Friday 30 December 2016

GDX - a very mixed year for the miners

With the precious metals cooling into the yearly close, the related mining stocks were unable to hold early significant gains. The ETF of GDX swung from an opening high of $22.24, settling -4.1% @ $20.86. For December, GDX gained a minor 0.4%. Across the year, GDX gained an extremely powerful 52.5%.

GDX, daily

GDX, monthly


First, I'd suggest you also go check my year end update for Gold and Silver... which should appear by late Friday night.

In early trading GDX seemed set for a year end close above the 50dma...but failed. Its not a great sign, and with gold/silver still within mid term downward trends, the short/mid term outlook for the miners remains bearish.

That only provisionally changes with GDX in the $23s.

For full bullish clarity, I want to see a monthly close in the $25s.

Its notable that GDX saw a Jan'2016 low of $12.36, hyper-ramping to a peak in Aug' at $31.70, and then cooling by around a third, to settle the year net higher by 52.5%. On any basis... a bullish year, but as noted, there is clearly still a threat of further downside, as Gold and Silver both remain mid term bearish.