Gold Miner ETF Eyes 2008 Low After Nearly 70% Plunge

Market Vectors Gold Miners ETF (NYSEArca: GDX) looks like it has a date with its 2008 low after losing two-thirds of its value in a prolonged sell-off.

The beleaguered ETF is down nearly 70% from its September 2011 high.

Gold miner stocks are falling harder than bullion prices amid speculation the Federal Reserve will step back from its monetary easing.

Including Wednesday’s 6% drop, GDX is down nearly 42% the past three months, while SPDR Gold Shares (NYSEArca: GLD) is off about 24%. [Another Manic Monday for Gold Miners]

“Gold Miners (GDX) are down hard today and the question is, can it continue? A strong downtrend is extending, with the next major level of support coming from the late 2008 low,” Investors Intelligence technical analyst Tarquin Coe said in a newsletter Wednesday.

“Additionally, further downside is indicated by the large head-and-shoulders top which confirmed in February, projecting a move beneath the 2008 low,” he added.

Full disclosure: Tom Lydon’s clients own GLD.

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