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How to Join the Gold Mining Party… Before it Ends :: The Market Oracle ::

Forget gold and silver for a moment. Do you hear the music? Yes, it’s coming from the mining ETFs club. But how long will the party last? And more importantly, why miners, you may ask? Because miners tend to outperform in the early days of a major rally. After closing only $0.10 below my initial downside target of $31 on Mar. 1 , the GDX ETF could be ripe for an upward revision. Able to ignore much of last week’s chaos, the GDX ETF’s outperformance of gold and silver signals that the tide has likely turned. Please see below: The GDX ETF has garnered historical support at roughly $29.52. The level also coincides with the early-March high, the mid-April low and the 61.8% Fibonacci retracement level.

So, Where Is Gold s Corrective Upswing? :: The Market Oracle ::

Can the precious metals move lower before a short-term correction, and after correcting, will they continue their medium-term downtrend? Gold & silver reversed yesterday (Mar. 2) and the GDX rallied after bottoming right in my previous target area, but it’s still unclear if the bottom is in. Let’s check what’s happening in the charts. Figure 1 – COMEX Gold Futures (GC.F) In short, gold reversed yesterday after touching the upper border or my target area. Can the temporary bottom be in? Yes. Is it likely to be in? Not necessarily. Most likely it’s not in yet, because gold still hasn’t moved to its strong support levels.

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