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Gold Miners Benefiting From Weaker U.S. Dollar

Commentaries & Views

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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