Gold Miners/Copper Ratio Is Looking Interesting (GDX)

Share This Article
July 1, 2018 8:00am NYSE:GDX

From Gary Tanashian: The GDX/COPX ratio has broken above the 50 & 200 day moving averages and is still going, despite gold’s ignominious state at the moment.


gdx/copx

Here’s what gold (GLD) looks like today.

gld

Here is what copper looked like at yesterday’s close (in-day today it is a hair under 3, at 2.9981/lb). And yes, that is important support.

Against the broader Industrial Metals complex GDX is weaker. But XME includes – you guessed it – gold miners and gold royalty companies along with metal service centers and the like. In other words, it’s not just a pure play on IM miners.

All in all, I do not have an overly bearish feeling about gold and its miners at this time. In fact, I don’t have a bearish feeling at all, even though traditional sector indicators like HUI/Gold and Silver/Gold have sagged over the last few days. That is because with the gold sector you think about being brave when the blood is flowing, not when the inflationary gold bug touts are leading the charge.

Bottom Line: Though both are weak, miners of a counter-cyclical metal are doing better than miners of a cyclical metal in June.

The VanEck Vectors Gold Miners ETF (GDX) closed at $22.31 on Friday, up $0.38 (+1.73%). Year-to-date, GDX has declined -4.00%, versus a 2.06% rise in the benchmark S&P 500 index during the same period.

GDX currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #15 of 34 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of NFTRH.com.


Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories