Are Gold Miners Going Higher?Gold miners are one of the top-performing industries this year, and some traders may see further upside in a key ETF tracking the group.
The first pattern on today’s chart of the VanEck Gold Miners ETF is the falling trendline along the highs of October and February. GDX cleared that resistance on Thursday, which may suggest a breakout is underway.
Second, the 50-day simple moving average (SMA) rose above the 200-day SMA in February and above the 100-day SMA in March. That alignment, with faster SMAs above slower SMAs, may be consistent with a longer-term uptrend.
Third, the ETF peaked around $39 in December and bounced at the same level on February 28. Did old resistance become new support?
Next, MACD just turned positive. The 8-day exponential moving average (EMA) is also above the 21-day EMA. Those are potentially bullish short-term signals.
Fifth, GDX remains below its 2020 high of $45.78 –- despite physical gold setting new records. The ETF is also still under peaks from early last decade. Investors may wonder whether the producing companies are undervalued on a relative basis.
Finally, TradeStation data shows GDX averaging roughly 128,000 options per day in the last month. That may help traders position for moves with calls and puts.
Standardized Performances for the ETF mentioned above:
VanEck Gold Miners ETF (GDX)
1-year: +52.63%
5-years: +34.98%
10-year: +83.14%
(As of February 28, 2025)
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