Gold Miners Retreat
Many of the leading gold mining stocks have rallied sharply higher from August 5, 2011. At that time, the popular Market Vectors Gold Miners ETF (NYSE:GDX) was trading as low as $53.77 a share. The leading gold mining stocks are pausing today from their recent advance. This morning, the GDX is trading lower by 0.75 cents to $62.94 a share. The current pattern on the GDX daily chart remains very strong, however, after such a strong advance a pullback or some consolidation should not be ruled out before the GDX moves higher. It also important to note that the gold mining stock have lagged the precious metal this year. Traders can watch for intra-day support on the GDX around the $62.35 area. The GDX will have intra-day resistance around the $63.70 area, and $64.50 levels.
Some leading gold mining stocks that are declining this morning include Randgold Resources LTD(NYSE:GOLD), Agnico Eagle Mines LTD(NYSE:AEM), and Newmont Mining Corp.(NYSE:NEM). These stocks will usually trade in a very similar fashion. Traders should continue to watch the GDX support and resistance levels as guide for the gold mining sector.