“But right now, the performance ratio of the GDX gold miners ETF versus the GLD gold ETF sports a bullish momentum condition on long-term charts. The ratio made a lower low in December than it did in June, but the relative strength index (RSI) made a higher low over that same span. It suggests a waning in bearish conditions and often presages a rebound in prices—the ratio itself, in this case,” writes Kahn for Barron’s.
Importantly, volume is confirming GDX’s bullish price action. For example, more than 59 million shares changed hands in the ETF Thursday. That is more than the volume in the U.S. Natural Gas Fund (NYSEArca: UNG) and the iShares China Large-Cap ETF (NYSEArca: FXI) combined.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.