⭐ Start off 2025 with a powerful boost to your portfolio: January’s freshest AI-picked stocksUnlock stocks

Gold Miners Leaving Its Seven Year Bearish Itch

Published 02/24/2020, 05:20 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
-
AAPL
-
GC
-
GDX
-
SMH
-
XLK
-

The Coronavirus continues to run amuck and is creating havoc on human lives and the markets. So rather than focus on opinions about whether or not it will become a worldwide pandemic, let’s look at the immediate impact. First and foremost, Apple (NASDAQ:AAPL) was hit hard this week and ended down over -2.5% on Friday and is now off -5% from its recent highs. Considering Apple is the biggest component in our key benchmark indexes, it’s not something to dismiss.

GDX Weekly Chart

China’s central bank has pumped in almost $500 billion dollars of liquidity to try to offset the impact of the virus. The question is will this huge injection will be enough to get people out of isolation and maybe risk their lives to go out and buy products (like a new iPhone). The pressure worldwide on rates trickled down to US long bonds which hit all-time lows in yield. Meanwhile Gold, hit seven-year highs and Gold Miners are looking to break out of a 7-year basing pattern. Volatility jumped and soft commodities (helped by a spreading locust) look poised to join the rally in metals. Switzerland stock market firmed, not surprising considering the flight to gold.

This week’s highlights are:

  • Risk Gauges backed off to full Risk Off

  • Leading tech sectors (XLK, SMH) were hit hardest on this sell-off

  • Safety plays such as Utilities and Consumer Staples firmed

  • Brother Biotech acted well on a relative basis and closed positive for last five days, while Retail firmed

  • Market Internals went negative along with Sentiment

  • Volume patterns reversed from last week and now showing Institutional selling across all key benchmarks

  • Volatility jumped, confirming this week’s permission

  • Bonds, Gold & Gold Miners (NYSE:GDX) +8.23% on the week) all rallied to new multi-year highs

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.