Gold Needs A Daily Close Above $1,230

GDX- We are beginning to see evidence of a rebound. Prices opened a gap yesterday and closed above the 10-day EMA. However, there was mild selling into strength numbers in both GDX and GDXJ. With a rate hike expected in June, a rebound should not exceed the $22.50 – $23.50 level in GDX.

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GDXJ- Prices produced a gap but couldn’t close above the 10-day EMA. I think junior miners will continue to underperform as GDXJ undergoes a significant rebalancing.

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Gold needs a daily close above $1,230, and Silver needs to close above $16.32 to form a swing low. There is significant overhead resistance in gold between $1,245 and $1,265. Resistance for silver arrives between $16.80 and $17.00.

I don’t anticipate much of a rebound with a rate hike just around the corner. Nevertheless, I’ll be on the lookout for the market to throw us a curveball.