Thursday 31 October 2019

Miners back on the climb

The gold miner ETF of GDX ended the month on a very bullish note, settling +70cents (2.5%) to $28.15, and that resulted in a net October gain of $1.44 (5.4%). With Gold set for new multi-year highs, the m/t term outlook for the miners remains extremely bullish.

GDX monthly

GDX daily


October saw a new multi-week low of $26.18, but ended on a strong note. The Halloween settlement was notably above the 50dma, and bodes bullish into/across November.

For the month, the miners gained a powerful 5.4%. Multi-month price structure is a bull flag, and it offers broader upside, with next target of the 2016 high of $31.28. Any price action >32s would be decisive, and offer a grander move in 2020 to 50/52.
The two biggest components of GDX:

Newmont Goldcorp (NEM), monthly

Newmont gained $1.81 (4.8%) to $39.73. The October settlement bodes well for November, with big target of the 2016 high of $43.31, and secondary target of the psy'50/51 zone.

Barrick Gold (GOLD), monthly

Barrick Gold saw a month of relatively tight price action, settling +3cents to $17.36. Multi-month price structure is a bull flag, offering the 2016 high of $22.78.
Of the two, I favour Barrick, but there is lot to be said for just a broad based ETF like GDX.