Tuesday 31 January 2023

Miners powerfully higher

The gold miner ETF of GDX saw a net January gain of +$3.36 (11.7%) to $32.02, especially helped with Gold printing the $1950s.

GDX, monthly



The collective of gold/silver miners climbed for a fifth consecutive month. I would note the 10MA at $27.85, which was decisively settled above.

Whilst the miners outperformed the main market, unless you believe the main market has a key m/t floor from early Oct' 2022, any renewed downside will be a major downward pressure on the miners. It doesn't necessarily mean they will be net lower, but it does mean they would be restrained to a considerable degree.

Three of the key miners...

Newmont (NEM), monthly 

Newmont saw a net January gain of +$5.73 (12.1%) to $52.93. I would note the monthly 10MA in the $50s, which was settled above for the first time since May 2022. Monthly momentum remains negative, and I'd note the March 2020 spike low of $30.11.

Barrick Gold (GOLD), monthly


A net January gain of +$2.37 (13.8%) to $19.55. Momentum is due to positive at the Feb'1st open. Next resistance is around $21.00.

First Majestic Silver (AG), monthly


A net January decline of -$0.45 (5.4%) to $7.89. A second consecutive settlement below the 10MA, as the silver miners are massively under-performing the gold miners.

Of the three, yours truly favours GOLD.
As of end January 2023... I hold no miner stocks/options.

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