Gold Hits 2015 Running

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It was a very constructive week for the gold-mining sector – a few things stand out:

  • The (ARCA:GDX) rose 3.84% and the (ARCA:GDXJ) rose 6.44% even as Gold itself fell .65% on the week
  • GDX made a higher low and a higher high vs. last week and also posted a higher low for the 2nd consecutive week
  • GDX posted a weekly close above its 50-day simple moving average for the first time since August 29th, 2014


Market Vectors Gold Miners
Market Vectors Gold Miners


GDX closed at the high for the week as the daily RSI-14 crossed back over the median line pointing higher

  • There was significant options activity in March and June GDX calls today including one trade in particular where a large trader paid $264,000 for a batch of June $23 strike calls (21.4% above today’s closing level) – I view this sort of large trader options activity as a gauge of smart money sentiment. Simply put some speculative money is flowing back into this beaten down sector.

Overall it was a constructive week and a very good start to the new year for the gold sector. The bottoming process which began in late-October is starting to show signs of transitioning into a nascent uptrend. Only time will tell if this will be the case although there can be no doubt that some green shoots sprouted up this week.

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