The gold and gold mining sectors are under severe pressure today. The popular Market Vectors Gold Miners ETF(NYSE:GDX) is trading lower by $1.39 to $59.38 this morning. This ETF topped out on December 7, 2010 at $64.62. Since that time the GDX has been in correction mode. The daily chart looks to have strong support around the $58.00 level. Intra-day the GDX should have short term intra-day support around the $58.95 level.
Other leading gold mining stocks that are selling off today are Agnico Eagle Mines Ltd.(NYSE:AEM), Randgold Resources Ltd.(NASDAQ:GOLD), and Yamana Gold Inc.(NYSE:AUY) just to name a few. The entire sector looks to be under pressure and may have a bit more downside in the near term. Traders and investors should follow the GDX closely as this ETF will track the leaders of the sector. As long as central banks continue to print money this sector will be a buy again.
Nicholas Santiago
www.InTheMoneyStocks.com
