Gold Miners Explode
Precious metals have been one of the worse performing sectors recently. Today that is not the case, the SPDR Gold Trust (ETF) (NYSE: GLD), and the iShares Silver Trust (ETF) (NYSE: SLV) are outperforming every major industry group on the day. The move higher comes as the U.S. Dollar Index futures decline on the session. It should also be noted that the USD/JPY is also falling and that weak currency pair also helps the precious metals to rally higher.
Some of the gold and silver mining stocks that are rallying higher today include Yamana Gold Inc. (USA) (NYSE: AUY), Goldcorp Inc. (USA) (NYSE: GG), and Pan American Silver Corp. (USA) (NASDAQ: PAAS). Traders that want to track and trade the gold mining sector should follow the Market Vectors Gold Miners ETF (NYSE: GDX). Today, the GDX is trading higher by 6.23 percent at $27.48 a share. Short term day traders should watch for intra-day resistance around the $28.00 level. This industry group is showing tremendous intra-day relative strength today, so trying to fade this equity is going to be a tough endeavor. Traders should watch the USD/JPY, and the U.S. Dollar Index closely as the precious metals will generally trade inversely to the dollar.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.