GDX - an important net weekly gain

Whilst the precious metals broke new multi-week lows, the related mining stocks displayed some resilience. The sector ETF of GDX settled the week on a rather positive note, +1.6% at $22.73, which made for a net weekly gain of a powerful 5.4%. Near term outlook remains somewhat shaky.


GDX, daily

GDX, weekly

Summary

Last week saw a marginal break of core rising trend in the Gold miners, that extended back to the Jan'2016 lows. It was a surprise to be sure, but not a welcome one!

This week saw Gold and Silver break new multi-week lows, but the miners held up very well. The fact GDX settled powerfully higher for the week is a pretty bullish sign for the Gold miners.

However, last week's break of trend can't be glossed over lightly. I'd like to see a net monthly gain in GDX (>$22.23) to have some confidence that the break was indeed just a transient one. This week's net gain is important, but the May close will be infinitely more so.

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Yours truly will probably be publishing another Gold miners report in early June, to cover the settling May monthly candles.