The GDX made a fresh all-time low this morning and the HUI (Gold Bugs Index) reached levels it hasn’t seen since 2002:
However, there were a couple of small glimmers of hope:
- GDX printed a hammer reversal candlestick after breaching the $13 support level
The potential now exists for a failed breakdown which often leads to a sharp move in the opposite direction. We will be watching this closely early next week.
- On a day in which gold traded lower and briefly even fell back below $1,100/oz Newmont Mining (NEM) shares rose more than 4%
Outsized market moves that occur seemingly without commensurate news are always especially notable. This NEM rally definitely falls into that category and it will be interesting to see how things unfold over the coming days/weeks. NEM traded at .7x book value at this morning’s lows, someone might be seeing deep value in the United States’ largest gold producer.
Small glimmers of hope amid the dark depths of a 4-year old gold mining bear market.