Mining Stocks: A House Built On Shaky Ground – Investing.com

SourceInvesting.com
SectorFinancial Markets
CountryMiddle east

It’s tempting to say that miners are showing strength compared to gold based on the VanEck Vectors Gold Miners ETF's (NYSE:) performance, but other mining proxies say otherwise. Just because a house is standing doesn't mean its foundations are solid, and that's exactly the case with the miners. There’s one extra thing that I would like to point out about mining stocks’ technical picture today (April 8), and that’s their performance relative to .GDX ETF Daily Chart. Some investors might say that mining stocks are showing strength compared with gold as the GDX-to-gold ratio broke above its declining resistance line. However, I don’t think it’s fair to say so. I think that seeing a breakout in the GDX-to-gold ratio is not enough for one to say that the miners-to-gold ratio is breaking higher. After all, the GDX ETF is just one proxy for mining stocks, and if miners were really showing strength here, one should also see it in the case of other proxies for...read more...