MORNING UPDATE 10:22 AM

 

-GDX- Miners gapped slightly higher, and we see follow-through after the open. I’m not sure why because gold is up just $4.00 and the dollar seems to be reversing higher. Like I said in yesterdays report – “A solid close above the $18.55 level would support a rebound to the $19.75 gap. Whereas a bearish reversal tomorrow would likely lead to a pullback and more consolidation.” Let’s see where prices finish the day. I wouldn’t be surprised if today’s strong open reverses later today.

Miners reversed and bottomed September 11th, and Gold closed at $1203 that day. Today gold is at $1208, but miners have risen 7%. It’s hard for me to trust the rally in miners until gold and silver participate.

Gold (December) appears to be stuck in a range since August 23rd. We may not see the pattern resolved until next weeks Fed announcement.