Thursday 31 January 2019

Miners climbing with Gold

The gold miner ETF of GDX ended the month on a positive note, settling +2.3% at $22.69, which made for a fourth consecutive net monthly gain of 7.6%. The January settlement back in the $22s bodes broadly bullish into the spring.

GDX monthly

GDX daily


A eighth consecutive net daily gain for the gold mining ETF of GDX, nearing next key price threshold of the $22.80s - the July 2018 high. It was a fourth consecutive monthly gain, notably above the key 10MA, and key price threshold of the $21s. Further upside to the $25s look due within 1-2 months.

Things will turn VERY bullish for the miners when Gold breaks >$1400.

The two best miners (and biggest components of GDX)

Barrick Gold $GOLD

The merger with Randgold Resources is complete. Barrick Gold settled -1.1% at $13.39 for the month, but that was far above its early Jan' low of $11.52. Note the macd (green bar histogram) bullish cross, as broader price momentum favours the bulls for the first time since summer 2017. M/t bullish, soft target is psy'20, with secondary of $22.90.

Newmont Mining $NEM

Newmont is in the process of merging with Goldcorp (GG), which should be complete by March/April. Price action was much like Barrick Gold, settling -1.6% at $34.11, but well above the Jan' low of $30.67. Price momentum should turn outright bullish in March/April. First big target is the 2018 high of $41.46.