Mining Stocks’ Rally Despite Gold’s Decline

by Przemyslaw Radomski, CFA
Gold Seek

Quite a few rallies in the recent months were preceded by the mining stocks’ outperformance relative to gold and we just saw the same kind of phenomenon on Wednesday – GDX rallied while gold declined. Is the bottom in?

Let’s take a look at the miners’ chart for details – other charts don’t feature important changes from what we described previously so mining stocks are the part of the PM sector that we’ll focus on in today’s free article.

[…] Miners indeed moved higher yesterday, which was nothing unexpected. In yesterday’s alert we explained which technical phenomenon made it quite possible:

The volume was not just low – it was extremely low [on Monday]. Can it tell us anything? It suggests extra caution as metals and miners could be on the verge of a sudden upswing – that’s what happened in the previous months. [as you can see on the above chart]

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