We might have a reversal day today on GDX.
The story behind is not known, but it is probably some large funds buying gold at the double bottom after the shakeout during the night.
It might be a reaction to the continued selling pattern in the treasuries and also the fact that even though the yen reversed up after the Japanese authorities declared that it was "down enough," traders are not buying this reversal.
In other words, QE carries the inherent risk of destroying a currency, which is positive for gold.
You will note that there is not much selling on the US$, which is another indication that the move is due to funds buying and starting a short covering rally.
Pascal
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