gold crash coming - gold price drop today
"gold crash coming - gold price drop today"
in the news gold crash coming - gold price drop today? What this all about..... See below.
Gold mining stocks are sliding by more than 6 percent on Wednesday, and one chart-minded trader is placing a bet that will show a considerable profit if the miners continue to slide.
Gold is down more than 11 percent in the past 3 months, and gold mining stocks have followed, plunging some 30 percent during the same time. This is a dramatic reversal from the first seven months of the year, which saw the Market Vectors Gold Miners ETF (GDX) rise by more than 120 percent.
And unfortunately for those hanging on the once high-flying miners, "the gold market looks like it wants to continue lower, because we have posted a nice chart of the GDX for some of our readers below.
You can see that the market has been in a pretty consistent downtrend here through 2016, GDX is back down to 20 right now, and you can see that right now we are stuck inside a DOWNWARDS channel. Normally the longer these channels hold, the longer they will continue. So right now it seems gold is out of favor with investor. Here is the weekly chart of GDX....
One of the biggest problems for gold has been the U.S. dollar, which rose considerably against a basket of major currencies on Wednesday. A stronger dollar is bad news for gold prices, since if the inherent value of gold stays stable while that of the dollar rises, it will take fewer dollars to buy the same amount of gold. But we will keep our VIP members alerted.
Some of GDX's biggest holdings, naming Barrick Gold, Newmont Mining and Goldcorp as three companies that could also drop further. All three have been in a "solid downtrend" over the last several months, and "bear flag" patterns indicate that the declines might be on the horizon.
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