Thursday, May 5, 2016

Gold and GDX ready for a pause until year end

Gold and gold miners (GDX) are in a bull market (It's official: Gold miners are in a bull market!). Currently gold and miners have probably concluded wave I and are now on their way to corrective wave II (traditionally summer is a weak period for gold). We expect an ABC flat type of correction that will last until the end of the year and bring gold and GDX towards 1180 and 19 respectively (around 0.5  fib support line of the recent upmove). We expect gold to slightly overperform GDX during this correction.A deeper correction towards 0.618 fib level (1150 for gold and 17.5 for GDX) cannot be excluded.