GDX - a second week lower

The gold mining ETF of GDX settled the week on a moderately positive note, +0.5% at $21.68, but that still resulted in a third consecutive (if minor) net weekly decline of -3.6%. Near term outlook offers a test of big support around the $21.00 threshold.


GDX weekly

GDX daily

Summary

A second sig' net weekly decline for the miners, clearly pressured by a third consecutive net weekly decline for gold and silver.

The critical issue is whether Gold can hold the key $1200 threshold. If that is lost, it would be bode monstrously mid-term bearish for the related mining stocks.

Best guess? Silver has been broken since the summer, and the last two weeks have been rough for Gold. I'm increasingly leaning on the bearish side, not least as copper is also back under the key $3.00 threshold.

--
The bolder mining bulls could be long from around current levels, but to be clear, if GDX loses the $21s, and/or Gold <$1200, it would merit 'run for the exits'.

The cautious metal/mining bears would wait to chase lower on a break of GDX <21, and/or Gold <$1200.