Q: Gold miners witnessed a first noticeable pullback of 6-7% on Friday, after almost going up in straight line for several weeks, although Gold bullion was down only fractionally. It looks like, after a spectacular run, the sector may be exposed to additional drawdown, at least in the near term. Do you agree ?
Could you please suggest some near term support levels, for AEM and XGD, from technical perspective, in order to take advantage of this pull back to add to a position.
Thank You
Could you please suggest some near term support levels, for AEM and XGD, from technical perspective, in order to take advantage of this pull back to add to a position.
Thank You
5i Research Answer:
Nothing goes straight up, and the sector was due for a consolidation. We do not believe the long term thesis has changed at all. AEM should get support in the $240 range; XGD in the $47 range.