Gold Miners Benefiting From Weaker U.S. Dollar
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - The GDX had another intra-day reversal to the upside Monday as the US dollar dipped back below 90 on the Cash Settle Index and gold held above $1320.
Based on the trading action since the GDX had its second upside reversal after trading below critical support at $21, I believe the odds of a final flush before we break out of this 20 month consolidation are dwindling, so I will be placing a few orders this week on positions I feel the downside is very limited in their respective share prices.
The MACD on the daily GDX chart is showing a bullish TLBBS crossover, so the major miner ETF has a chance of being bought into the FOMC meeting speech next Wednesday. Many of the miners I track and/or own are trading as if they are sold out as well.
I would like to see a strong close above the $23 in the GDX to feel more comfortable about a possible long-term bottom being seen in the sector.