PDAC 2014 Gold Miner Update for Monday

I talked to a lot of great gold miners and developers yesterday at PDAC 2014 in Toronto. I also talked to a uranium company today. I expect more of the same today, along with base metals. Before I get to that, though, I wanted to take a quick look at gold and miners generally.

There seems to be a news-driven rally in gold right now.  Maybe it's because Russia is choosing a conflict with Ukraine over Crimea, as many believe.  I think it's more likely that the fact that China's manufacturing PMI slumped to a 3-month low is also shaking the markets, and leading many traders to believe that China is going to crank up the liquidity floodgates to keep its economy growing at a quick pace.

In any case, this is breaking gold out of the slump that it entered into last week, and pouring cold water on the broad stock market. Maybe gold miners will follow the broad market lower, maybe they'll follow gold higher. Here is a chart showing the overhead resistance for the Market Vectors Gold Miners (GDX), as well as support if it does continue to zig-zag lower ...

(Updated chart)

Looking at the chart, you could see the GDX was rolling over and probably headed for a test of one of those support levels. But the news over the weekend may have changed that, so keep an eye on overhead resistance.

Good luck out there today.  And if you're in Toronto, as I am, stay warm.