Gold Miner ETF Above 50-Day Average for First Time in Nine Months

July 22nd at 11:07am by John Spence

Market Vectors Gold Miners ETF (NYSEArca: GDX) rallied more than 5% on Monday to climb above its 50-day simple moving average for the first time in nearly nine months.

Gold miner ETFs were strong as bullion prices rose back over $1,300 an ounce. [Silver ETFs Lead Metals Rally]

One of this year’s most embattled sector plays, gold miners and the ETFs those stocks call home, have been showing signs of life in recent weeks. [Gold Mining ETFs: Contrarian Buys?]

GDX is up more than 10% the past month although the ETF is still sitting on a loss of about 40% for the trailing six months.

Traders trying to time a bottom in gold miner ETFs have been burned by several false-start rallies the past few years.

Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) rallied nearly 7% on Monday while Direxion Daily Gold Miners Bull 3x Shares (NYSEArca: NUGT), a 300% leveraged ETF, soared more than 16% at last check.

Market Vectors Gold Miners ETF

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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