Gold Miners Try To Dig Out The Ditch

Throughout this week, the leading gold mining stocks have come under heavy selling pressure. The Market Vectors Gold Miners ETF GDX has declined from $56.00 a share on December 12, 2011 down as low as $51.57 a share yesterday. That is a major drop for the ETF in less than a week by anyone’s standards. This morning, the GDX is trading higher by $1.05 to $52.75 a share. The daily chart is short term oversold so a near term technical bounce should not be ruled out. The GDX also has a lot of short term daily chart support around the October lows. Traders can watch for intra-day support on the GDX around the $53.25, and $54.00 levels.

Some other leading gold mining stocks that are trading higher this morning include Goldcorp Inc GG, Newmont Mining Corp NEM, and Yamana Gold Inc AUY. When gold and the gold miners decline it is usually a good sign of deflation in the market place. The opposite is true when gold and the gold miners rally, it is a sign of inflation. Therefore, all moves in the gold mining stocks should be viewed as short term at this time.

Nicholas Santiago
InTheMoneyStocks.com