Gold and the Miners: Let 'em Rest Now

I am not sure how many financial news outlets or pundits on social media were blaring headlines about gold miners printing seven-year highs last week, but I doubt very many did. But that is correct--The GDX ETF hit its highest level ($34.74) last week since April 2013, as seen on the GDX weekly chart, below. After a steep multi-week uptrend off the March lows, some resting here makes sense above the $30/31 breakout. 

While cryptocurrency still has tons of fans begging for a return to glory of 2017, they may be wise to become "woke," en parlance, to the breakout underway in gold and her derivative miners.

The debate of recent years regarding the utility of gold versus the viability of Bitcoin likely comes down to intrinsic value (gold has it) and thousands of years of recognition as a valid currency (gold has that, too). Bitcoin may have a bright future yet, for all I know.

But with GLD (ETF for the gold metal itself) also making seven-year highs (nearly eight, actually) to confirm the breakout in miners, I view the near-term multi-day pullback as a good moment in time to let them set up fresh long entries into next week. 

As for The Fed and their maniacal policies, gold continues to be one of the few untouched (or at least untarnished) prominent asset classes from their marketplace distortions--At least gold has not been distorted to the upside, if you catch my drift.