Gold Miners Poised to Rally?

• Posted by Robert Sinn
• on June 18th, 2012

The Gold Miners ETF ($GDX) rallied impressively today following an opening gap lower, despite a relatively flat gold price. While some may believe that it could be a subtle indication of a bet by market participants that the Fed could embark on a fresh round of asset purchases (QE) on Wednesday. However, today’s rally likely has more to do with an acquisition by Yamana Gold ($AUY) of Extorre Gold, an Ontario based company with a high grade low cost gold mine in Argentina, for $414 million which may have set off speculation that this beaten down sector may be entering a new phase of consolidation (read takovers). As one would have expected The Junior Gold Miners ETF ($GDXJ) rallied more than the senior miners:

Click to enlarge (notes on charts)

 

$GDX:

There are many gold/silver mining stock charts similar to the Extorre chart ( XG.TO)….before today’s massive gap higher:

 

 

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