Ahead of the Federal Reserve announcement at its annual Jackson Hole meeting, gold prices dipped to a four-week low, with gold miners and sector-related exchange traded funds breaking below a key level.

The VanEck Vectors Gold Miners ETF (NYSEArca: GDX) dropped 4.5% Wednesday, plummeting below its support at the short-term, 50-day simple moving average.

On the other hand, nvestors who hedged bets on miners with bearish options struck gold. On Wednesday, the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) surged 14.2%, Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) jumped 15.9%, ProShares UltraShort Gold Miners (NYSEArca: GDXS) gained 8.0% and ProShares UltraShort Junior Miners (NYSEArca: GDJS) increased 10.9%.

SEE MORE: 31 Gold ETFs Investors Should Size Up

Meanwhile, the SPDR Gold Shares (NYSEArca: GLD) dipped 0.9% and also fell below its support at the 50-day level as Comex gold futures decreased 1.2% to $1,329.6 per ounce.

“The decline in gold today in my mind was mostly technical,” Kitco Senior Analyst Jim Wyckoff told CNBC. “Also, the outside markets are in a bearish posture.”


Technical traders may keep tabs on the simple moving average to gauge short-term price trend of a security. Wyckoff warned that a close below the 50-day Wednesday for GLD and GDX would be more significant, reports Aparna Narayanan for Investor’s Business Daily.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.