- The GDX gold mining ETF has risen by 35% since its January low, versus gold's 11% rise. Over the past month, the GDX has even risen despite weakness in gold.
- In the near term, the strong technical pattern on the GDX suggests that further gains are likely.
- The GDX should also be expected to outperform the S&P500 significantly even at current gold prices.
- However, after recent gains, the GDX is now overvalued relative to gold prices and I believe gold itself has a superior risk-reward outlook.
For further details see:
GDX: Implications Of Strength In The Face Of Gold Weakness