GDX - back on the rise

Whilst gold and silver saw a mixed week, the miners caught a bounce. The gold miner ETF of GDX ended the week on a positive note, settling +1.6% at $23.59, which made for a very significant net weekly gain of 2.7%. Near term outlook offers further upside. First soft target is the Feb' high of $25.71.


GDX weekly

GDX monthly

Summary

So, 3 weeks down, and the gold miners are back on the rise. Clearly though, things only get interesting if the Feb' high of $25.71 is broken AND held above. Until then, its mostly been a year of broad chop.

The bigger monthly chart is even more illustrative of how price action is broadly stuck. The two clear thresholds are $31.70 and $18.58. The cautious bulls or bears, will simply sit on the sidelines until either of those are broken through.

Best guess? I'm leaning on the inflationary outlook. For now, the only sign of that is via copper, which saw a very bullish August settlement above the key $3.00 threshold.

Gold, Silver, and Copper broadly trade together, and if copper does climb into 2018, its difficult to see gold, silver, and the related mining stocks not following.

Key thresholds: Gold $1400, Silver $22s, Copper $3.00 (achieved).