Gold Miners Momentum Building as Gold is on Verge of Reaching All Time Highs

Published on Thursday, 17 June 2010 23:34 Written by Gerard Lerod

New York, Jun 17^th (TradersHuddle.com) – As gold futures continue to flirt with reaching all time highs, momentum is starting to build on the gold miners as well.

The Spider Gold Trust (NYSE:GLD) continues to build momentum as it coils with the ascending 50 day moving average serving as the uptrend reference point at $117 and the horizontal resistance point around the all time high of $122.45.

As the squeeze develops between the ascending moving averages and the horizontal resistance point, we can see momentum building. Based on this price action, investors are also looking at other ways to play what appear to be record Gold prices to come.

Therefore the Vector Gold Miners ETF (NYSE:GDX) saw a big jump today closing 2.52% higher. The gold miners ETF provide traders with a good sector play, without having to look for individual names.

The GDX finished the session above the Upper Bollinger Band, so definitely momentum traders are in control.