Today, many of the leading gold mining stocks are declining and trading sharply lower on the session. Stocks such as Newmont Corp (NYSE: NEM), Agnico Eagle Mines (NYSE: AEM), Royal Gold Inc (NYSE: RGLD) and others are all slumping after a very strong month of May. The popular Vaneck Vectors Gold Miners ETF (NYSEARCA: GDX) is falling by 2.83% to $34.54 a share today. Money seems to be coming out of the leading gold stocks and is being put to work in other sectors. Gold miners are often referred to as the ultimate fear trade, but as fear leaves the marketplace the gold sector is seeing some distribution.

Traders and investors should note that the leading gold mining stocks have all made parabolic moves on the charts since the March 2020 lows. This popular industry group has been one of the biggest winners over the past two months and was really due to a pullback or consolidate. Believe it or not, it is actually a positive for the leading gold mining stocks to work off their overbought condition on the charts at this time. If you are a long term gold mining bull then this is really what you want to see. After all, anything that goes parabolic on the charts is usually unsustainable and will often crash back down. So a steady pullback in the gold mining stocks is healthy for the sector. I will now be watching the pattern that forms in this important industry group over the next few weeks. Once the overbought condition is alleviated then this industry group will likely be a buying opportunity again.