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Despite the stronger dollar on Monday, the gold and gold mining ETFs held up well. The Market Vectors Gold Miners ETF (GDX) continues to hold above its 50-day moving average (MA) at $57.40 and has stronger support in the $54-$56 area. The rising 200-day MA is now at $51.15 and GDX is well below its recent highs. The chart of the SPDR Gold Trust (GLD) looks very similar as it is holding short-term support in the $130-$131 area. GLD broke through major resistance in the $125 area in September and this level is now strong support. GDX has outperformed GLD from the summer lows as it is up 25.7% versus just 17.8% for GLD.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
