Using the ETFs for a real time view…
SLV is filling a gap near 15.50 and tagging the SMA 50. That’s the 1st potential support. Better support is 14.40 (SMA 200) to 14.75 (trend line).
GLD in essence has support at the 50 day averages and then the SMA 200 area.
GDX made a short-term bearish move poking below recent lows, but was due for a test of the 50 day averages, which would be a routine thing. A real correction would have us looking at around 20 as the next support area.
If I am a bull I like that this has been triggered by the Fed minutes, sending the wrong kind of gold bugs (inflationist momentum players) scattering. I also like that the stock market is breaking down and crude oil is turning down. In short, the fundamentals are getting pointed back in the right direction.
Now, this could be a mini or a maxi correction. The parameters noted above will generally guide us in the short-term. I wanted to get these simple views in front of you quickly, and will have further thoughts obviously, as the situation develops.
