Tuesday 31 May 2022

Miners still struggling

The gold miner ETF of GDX saw a net May decline of -$3.26 (9.3%) to $31.73, the sector impacted by weak gold/silver, but also the broader equity market.

GDX, monthly



The miners saw an early May high of $36.17, but cooled back to settle powerfully lower at $31.73. I would note the 10MA at $32.51, which was settled below, as the m/t bullish trend has been broken. Monthly momentum has stalled just under the key zero threshold. Next target of the Aug'2020 high of $44.76 looks out of range until at least late summer.

Three of the key miners...

Newmont (NEM), monthly 



Newmont saw a net May decline of -$5.00 (6.9%) to $67.85. I would note the monthly 10MA at $61.52, which was settled above. Monthly momentum weakened, if remaining moderately positive.

Barrick Gold (GOLD), monthly


Barrick Gold cooled back to settle -$1.61 (7.3%) to $20.49. Momentum has turned back to negative. A push above the Aug'2020 high of $30.47 will likely require Gold  >$2100.

First Majestic Silver (AG), monthly


First Majestic saw a net May decline of -$2.32 (22.6%) to $7.97. April's bearish engulfing candle played out. Silver printing the $20s, and the m/t broken main market sure isn't helping.

Of the three, yours truly favours NEM, if only as its more resilient than the sector.

For more of the same...

For details and the latest offers > https://www.tradingsunset.com