The gold bears are back! At least for today. A revised GDP of 1.4% coupled with rising bond yields is putting pressure on gold and the mining shares. The SPY and Nasdaq are also seeing selling pressure, almost everything is RED today. Gold is not attracting any safe haven bids so far and is now sliding towards the lower yellow trendline. Once that breaks then we should see 1220 quickly. The huge gold dump on Sunday could be a sign of things to come.
What should be concerning for gold bulls is that the USD has dropped significantly since Monday yet gold cannot even stay above 1250. What will happen when the USD finally reverses? Go figure.
GDX
I pointed out the large block prints in miners and bearish option bets as another warning signal. The big boyz are telegraphing a drop in gold in my opinion. GDX should begin to mark down soon. Once it breaks the Red uptrend line from Dec selling should pickup as stops get hit.
These charts look similar huh
My Target for GDX remains at 18.6 - 19.6. We are very near to a resolution point to the choppy range trading.
I remain BEARISH on gold and miners in the short term. Again, anything can happen but the odds favor lower prices. GL Traders.
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