Comex gold is in bull market territory, as are the VanEck Vectors Gold Miners ETF (GDX) , Barrick Gold (ABX) , Yamana Gold (AUY) , Goldcorp (GG) and Newmont Mining (NEM) . The exchange-traded fund and the gold mining stocks are significantly outperforming the price of the precious metal itself.
Keep in mind that the ETF and gold stocks are more volatile than gold futures, and are in bear market territory vs. their July highs.
Here's a scorecard for Comex gold, the gold ETF and the four gold mining stocks.
The weekly chart shows a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold. A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00.
Here's the weekly chart for the VanEck Vectors Gold Miners ETF.
Courtesy of MetaStock Xenith
The VanEck Vectors Gold Miners ETF closed Wednesday at $24.76, up 80.5% year to date. It is in bear market territory, 22.1% below its Aug. 12 high of $31.79, and also in bull market territory, 99.7% above its Jan. 19 low of $12.40.
The weekly chart shifts to positive given a close on Friday above the key weekly moving average of $25.10. A close below the 200-week simple moving average at $23.34 would be a warning. The weekly momentum reading is projected to rise to 17.99 this week, up from 16.54 on Oct. 28. A strong close will pull momentum above the oversold threshold of 20.00.
Investors looking to buy the gold ETF should do so on weakness to $22.24, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should sell strength to $31.21, which is a key level on technical charts until the end of November.