The gold miners, as represented by the GDX, continue to exhibit impressive relative strength as they remain in a light volume consolidation in the low $23s:

GDX (Daily - 9 Month)

There is a lot to like about this chart:

  • Relative Strength (Daily RSI-14) near 60 'sweet spot'
  • Series of higher lows/highs since early July
  • Breakout from multi-month descending triangle which includes a 'triple bottom' near $21
  • Recent light volume trading has kept GDX off the radar of most and also occurred within a healthy range-bound consolidation

A weekly close above $23.50 would be very positive, while a weekly close above $23.86 (early June peak) would be even better (snapping the longer term streak of lower highs in place since February).

With the Jackson Hole central banker convention taking place tomorrow anything can happen. However, something tells me that whatever Yellen and Draghi are planning to say tomorrow will not be bearish for precious metals. 


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