Gold Mining Stocks Shine on the Back of a Weak Dollar

By Oct 1, 2012, 8:46 AM Author's Blog  

This morning, most of the leading gold mining stocks are trading higher on the session. Traders should note that when the U.S. Dollar Index declines the major stock and commodity indexes will inflate and trade higher. Today, the U.S. Dollar Index futures (DX Z2) are declining lower by 0.29 cents to $79.74 per contract. This drop in the dollar is helping to inflate stocks, gold, silver, and gold mining stocks.

Today, the popular Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading higher by 0.61 cents to $54.30 a share. Short term traders should watch for intra-day resistance around the $54.60, and $55.00 levels. Traders should realize that while the gold miners are holding up very well today the weekly charts face a lot of important resistance around the $55.00 level. This tells us that while the industry group remains strong it will likely take some time before the GDX breaks significantly higher on the daily and weekly charts.

Some leading gold mining stocks that are trading higher today include Yamana Gold Inc (NYSE:AUY), Newmont Mining Corp (NYSE:NEM), Goldcorp Inc (NYSE:GG), and Randgold Resources Ltd (NASDAQ:GOLD). All of these charts look very similar to the chart of the GDX at this time.

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