Gold Stocks Rebound

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There's a much more dramatic story on gold's equity side. Lately, gold mining shares have rebounded dramatically in the wake of their wholesale dumping by speculative funds. In the past 1- weeks, gold issues tracked by the Market Vectors Gold Miners ETF (AMEX: GDX) have shot up more than 43%.

Gold was beat up again in COMEX trading pits Wednesday and wobbled through the overnight market to extend the decline. Still, spot gold is $24 an ounce higher than last week's finishing level. Some technical indicators are, in fact, flashing "bullish" now, though a close above $775 would be needed to confirm the presence of a short-term low...

There's a much more dramatic story on gold's equity side. Lately, gold mining shares have rebounded dramatically in the wake of their wholesale dumping by speculative funds. In the past 1- weeks, gold issues tracked by the Market Vectors Gold Miners ETF (AMEX: GDX) have shot up more than 43%.

Whether this represents a coda to the drubbing gold stocks have endured this year remains to be seen. One thing is certain, though: Year-to-date, bullion's fared a lot better than gold equities. The gold-to-stock ratio, pitting the bullion-owning SPDR Gold Shares Trust (NYSE Arca: GLD) against GDX, more than doubled as financial markets have soured.

Some traders believe that bullion may have gotten ahead of itself, though it may not appear that way when the metal's regarded on a stand-alone basis. For the year, GLD's lost nearly 12%. GDX, however, has sunk 49%...

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