Gold Miners Try To Dig Out Of Yesterday's Hole
This morning, all of the leading gold mining stocks are ticking higher. Yesterday, gold, silver, and leading mining stocks were slammed sharply lower as the U.S. Dollar Index rallied. Traders should realize that when markets stage an outside day on heavy volume it is usually an indication of lower prices to come. The popular and highly traded Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading higher by 0.12 cents to $55.52 a share. The daily chart is signaling that the GDX will sell down to the $52.00 area before reaching some near term support. Short term traders can watch for intra-day support around the $54.67 and $54.00 levels.
Some leading gold mining stocks that will be volatile over the next week will be Randgold Resources Ltd (NASDAQ:GOLD), Royal Gold, Inc (NASDAQ:RGLD), Yamana Gold Inc (NYSE:AUY), and Newmont Mining Corp (NYSE:NEM). All of these stocks could be vulnerable to further declines in the near term. Please understand that gold and most gold mining stocks will trade inverse to the U.S. Dollar index.