Gold Miners ETF (GDX)

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Gold Prices Show Signs of Bottoming
By: AG Thorson | May 20, 2022

• Gold plunged nearly $300 since March, and miners performed even worse. Over the past 2-years, gold has gone nowhere. Is the bull market dead?

Gold bugs will be happy to know the 5-year chart suggests a simple pause before new highs (see below).

Metals and miners could drop further over systemic market risk, but the technicals are starting to support a bottom.

Gold Price Forecast

Gold 5-Year daily chart

The cup-with-handle pattern looks complete. Prices fell deeper than anticipated, but I’m beginning to see signs of a bottom. I continue to expect a breakout above $2000 in the coming months; probably when the Fed pivots.



Gold daily chart

The close-up of the handle formation shows gold dipping briefly below the 200-day MA. Prices closed back above it Thursday, and I see the potential for a bottom if we see a strong finish above $1850.



Silver and Miners Analysis

Silver daily chart

Silver must get back above $22.50 to consider a cycle low.



GDX daily chart

Miners managed to close above last week’s gap ($31.70). Prices may have reached a cycle low. Prices remain vulnerable to sharp dips and general market risk.



GDXJ daily chart

Juniors bounced sharply, supporting a possible low. A close above the gap near $41.50 is the next step in confirming a bottom.



Word of Caution: Markets are likely to remain volatile through 2022. Whatever happens today could swiftly reverse tomorrow. Try not to read too much into one week’s price action.

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