The Randgold - Barrick merger lifted enthusiasm within the mining sector. As the metal turned up with gold breaking and holding above $1200/Oz (despite a rising USD and interest rates creeping up), miners seemed ready for a lengthy rally, especially after HUI/Gold completed an inverted head and shoulders pattern.
However enthusiasm proved short lived. Though gold held well above $1200, gold miners were slain during the stock market correction. As quite often, the volatile mining sector was down more than the broad stock market, despite more healthy fundamentals. Investors are scratching their heads.
Repeatedly, SIL / silver is hitting a bottom near 1.60. Every recovery attempt has been dead in the water. SIL/silver is beneath its 50 dma and its 200 dma. The decline has been ongoing for most of 2018. Silver miners have lost their edge over their gold mining peers.
However enthusiasm proved short lived. Though gold held well above $1200, gold miners were slain during the stock market correction. As quite often, the volatile mining sector was down more than the broad stock market, despite more healthy fundamentals. Investors are scratching their heads.
Inverted head & shoulder pattern of HUI/Gold
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| HUI/Gold, daily observations over the last six months. |
After completing the inverted head & shoulders pattern, HUI/Gold strengthened according to expectations. However enthusiasm waned quickly. We now witness a lifted left arm with the hand showing its middle finger...
If recent action among gold miners is the usual continuation of disappointments wearing out investor's patience, what silver miners made of it is even worse. For aggregate silver miners price action the Global-X ETF SIL is used. Its price is compared to that of silver bullion.
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| SIL / Silver, daily observatoins over the last six months |
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