Gold continues to consolidate as do the gold miners. After price took at the 2011 highs earlier this year, it has since gone into a digestion mode. This is normal price action before the next leg up on both gold and the gold miners. So where is the gold miner ETF GDX a buy? The answer can be found in the stock chart. The level is $31.00. This is a multi-factor support level consisting of the August 2019 high pivot as well as the February 2020 high pivot. In addition, if you take the low in March 2020 on GDX at $16.25 and then take the high on GDX at $45.85 in August 2020, a perfect 50% retrace is that same $31.00 level. This gives technical traders a firm buy price on gold miners before the next move higher.
As money printing continues in the United States and the Federal Reserve is unable to unwind their easy money policy without crashing the US economy, gold will be a major beneficiary. With gold, the gold miners will continue to move higher for years to come.
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