Gold & Gold Miners Surge, Watch This Resistance
This morning, the SPDR Gold Shares (NYSEARCA:GLD), and the Market Vectors Gold Miners ETF (NYSEARCA:GDX) are both rallying higher after a disappointing job report. The U.S. Dollar Index futures (DX Z3) are also weaker today trading lower by 0.40 cents to $79.34 per contract. Usually, a weaker U.S. Dollar will help to lift gold and the gold related markets.
Traders should expect the GLD to trade into the $133.00 level on the daily chart. There is a lot of resistance around this area for the GLD as it was a failed breakout in August. The former buyers at that level will most likely be sellers again.
The GDX will have near term daily chart resistance around the $27.75 level. This level was also a failed breakout point from September 18, 2013. So traders should expect the GDX to stall out around this area. After these levels are reached it will be all about the patterns on the charts to see gold's next move.