Gold has been holding up while other commodities collapsed in 2020. But today was special, as gold vaulted back through $1600. The best part of the move was that the miners also supported the move! First of all, this is the chart of gold. Looks great, uptrend intact.
The important difference to notice was that of the gold miners, expressed by the GDX ETF. While gold surged to a new high at the start of the year, the gold miners did not. This move today bounced off the trend line from May 2018. It does look like the gold miners are ready to start making a move, which they can do very fast with rapid returns.
I like the gold space and I'll be talking about it more on the Friday edition of Market Buzz at 10:30 AM ET.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
Want to stay on top of the market's latest intermarket signals?