Despite the last week's rise in the price of gold, there just has been any sign of strength in either gold or the gold stocks. Turning to the charts.
First looking at the price of the Spider Gold Shares Trust (Ticker GLD). The GLD rose a few points on the week, but volume levels on the increase were weak. Additionally, the price of the GLD is trading into two downdrafts here, the 11/2 downdraft with 14.8 million shares and the 12/18 swing o where 24 million shares exchanged hands. Since the mini-rally began on 1/7, the highest share count has been 14.9 million shares. This is enough apparent demand heading into the 11/2 downdraft, but falls far short of the of supply of 12/18.
As for the GDX or the Market Vectors Godl Miners ETF, the fund remains in a down trend. The bump up in shares (and you may have to squint because it is less than $1 per share since 1/8) has been on anemic share volumes. The price is bumping up against the mid-November downdraft where nearly 30 million shares were traded. This compares to just 12 million shares in the current 'rally'. That all said, the GDX appears further along in its decline comparatively to gold and it is likely to turn before the price of gold.
First looking at the price of the Spider Gold Shares Trust (Ticker GLD). The GLD rose a few points on the week, but volume levels on the increase were weak. Additionally, the price of the GLD is trading into two downdrafts here, the 11/2 downdraft with 14.8 million shares and the 12/18 swing o where 24 million shares exchanged hands. Since the mini-rally began on 1/7, the highest share count has been 14.9 million shares. This is enough apparent demand heading into the 11/2 downdraft, but falls far short of the of supply of 12/18.
As for the GDX or the Market Vectors Godl Miners ETF, the fund remains in a down trend. The bump up in shares (and you may have to squint because it is less than $1 per share since 1/8) has been on anemic share volumes. The price is bumping up against the mid-November downdraft where nearly 30 million shares were traded. This compares to just 12 million shares in the current 'rally'. That all said, the GDX appears further along in its decline comparatively to gold and it is likely to turn before the price of gold.
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