Home 2020 Bullish Gold Bugs are Driving Mining Funds North

Bullish Gold Bugs are Driving Mining Funds North

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The rising prices of precious metals since March have boosted the mining sector and now we are seeing sharp Northside ticks across many Key mining funds.

Here we look at some of them to get an idea of the returns investors have had marked over the last 6 months.

The Gold Bugs Index (HUI) has recovered nicely since March, posting a 2X gainer off of the March bottom. Technically the index formed a Bullish cup pattern over the month of June indicating momentum is building for another Northside move.

The VanEck Gold Miners (GDX) index is showing a similar 2X+ move North with a Bullish cup pattern forming over the month of June. Signalling gold investors are anticipating another run North here too.

The iShares MSCI Global Gold Miners ETF (RING) has the same pattern as the above 2 indexes. These 3 funds are seeing the same investment pattern emerging.

The same pattern emerged in the Sprott Gold Miners ETF (SGDM), a 2X recovery since mid-March with a Bullish cup pattern formed over June.

Again, this miner index looks poised for a breakout to the Northside, the US economic news will be Key in here.

The pattern in the gold juniors is very similar, except that the launch higher since March they saw a 2.5X gainer from 20 to nearly 50, and formed the Bullish cup pattern with a gentler, faster slope.

The VanEck Vectors Junior Gold Miner Index (GDXJ) indicates more Northside momentum with less hesitation by junior gold mining investors.

I see gold prices heading North as the precious Yellow metal is living up to its reputations as stores of value and safety as the global economy emerges from the instant recession.

The charts are following the confidence of the markets in the C-19 coronavirus economy.

The gains in the indexes have come from increased investment into physical precious metals and their associated funds, has driven the miners higher as more of the supply chain begins to reopen.

Conflicting US economic data will continue to support the Bullish precious metals equity charts.

Given all time highs in sovereign and corporate debt, it does not appear we are anywhere near out of the woods in the war against The China Virus.

That being the precious metals stocks and funds will continue there Bull run for some time ahead, the outlook is shiny.

Have a healthy week, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.