Friday 28 September 2018

Miners broadly weak

The gold miner ETF of GDX ended the week on a bullish note, +1.0% at $18.52, but that still made for a fourth consecutive net monthly decline, -3cents (0.2%). The mid term outlook is bearish, as key support has been decisively settled under for two consecutive months.

GDX monthly

GDX daily


Suffice to add, August saw a monstrously bearish break of support. September has broken a new multi-year low of $17.28. With the m/t trend in gold and silver also bearish, the miners will remain under pressure into October/Q4.

Key miners...

Barrick Gold (ABX), monthly

Barrick Gold just this past week announced a merger with Randgold Resources (GOLD). I'm not sure when that will be formally signed off. It is safe to assume that the combined company will use the apt' ticker of GOLD.

Newmont Mining (NEM), monthly

Newmont declined for a fifth consecutive month. Yes, the September settlement was right on a key price threshold, but the m/t trend is clearly bearish.

Whilst both miners are superb (and are the two biggest components of GDX), both have to be seen as bearish, not least as gold and silver are broadly weak. Arguably, even the boldest of gold bugs will leave the sector alone for some months to come.