GDX - a choppy week for the miners

It was a choppy week for the Gold miners, with the sector ETF of GDX settling the week on a positive note, +0.9% at $22.86, which made for a net weekly gain of 0.6%. Near term outlook threatens further choppy price action, but May does look set to close with a net gain.


GDX, daily

GDX, weekly

Summary

Suffice to add, a week of chop. Relative to the gains in the precious metals, the mining stocks are still lagging. The situation is actually very similar to oil and the related energy stocks.

Another big push higher seems due this coming summer. Things will turn rather bullish for GDX with a break above the Feb' high of $25.71. If that is seen, it will open to the door to a straight challenge of the summer 2016 high of $31.70, and that is a very considerable 38.7% to the upside.

The key thresholds to keep in mind: Gold $1400s, Silver $22s, Copper >$3.00, and GDX >$32.

I remain leaning bullish... as I believe 'Mr inflation is out there'.