Gold Miner ETFs Bounce on Heavy Volume

May 9th at 12:27pm by John Spence

Gold miner ETFs saw a big turnaround Wednesday on heavy volume, raising hopes the long-suffering sector has finally hit bottom.

Market Vectors Gold Miners (NYSEArca: GDX) rallied 3.1% in afternoon trade while its small-cap counterpart Market Vectors Junior Gold Miners (NYSEArca: GDXJ) vaulted 3.4%.

GDX has been in a downward spiral since the beginning of March after hitting resistance at the 200-day simple moving average.

The miner ETF was down 24% for the three months ended May 8, according to Morningstar. It recently dropped to a one-year low. [Gold Miner ETF Falls to New 52-Week Low]

ETFs tracking precious metals and miner stocks have sold off recently while the U.S. dollar has moved higher on the latest Eurozone debt scare. [Gold, Miner ETFs Fall in Risk-Off Trade]

Market Vectors Gold Miners


The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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