GDX•GDX•Gold posted a standout performance on Wednesday as a weaker dollar and a sharp decline in Treasury yields pushed spot gold XAU= up more than 4%, its biggest one-day gain since early February.
The move also ignited a rally in mining shares. With gold and gold/silver miners maintaining an exceptionally strong positive 10-week correlation of nearly 1.0, the PHLX Gold/Silver Mining Index .XAU jumped almost 9%, marking its largest one-day advance since April 2025.
The rally accelerated after gold broke above a resistance line drawn from the late-January 2026 high on an arithmetic chart. The breakout is less convincing on a logarithmic chart, which measures moves in percentage rather than absolute terms. On that basis, resistance remains intact near $4,542.
In other words, bulls have made significant progress but have yet to secure a decisive breakout.
For now, traders are focused on support in the $4,449-$4,427 zone. A break below that area could point to a deeper pullback. A fall through the August 14 low of $4,310.06 would raise the risk of a much more significant decline.
On the upside, a move back above the 200-DMA, followed by a close above the resistance line, could shift focus to the next hurdles: the May 29 high at $4,595.01 and the May 12 peak at $4,773.14.
Thursday's backdrop is less supportive. The dollar =USD is roughly flat, and the U.S. 10-year Treasury yield US10YT=RR is erasing much of Wednesday's decline. Gold, meanwhile, is giving back part of Wednesday’s gains.
From a technical perspective, Wednesday marked an important milestone as gold closed above its 200-day moving average (DMA) for the first time since June 4. That average is now near $4,511. On Thursday, however, the metal is retreating just over 1% to around $4,470 as investors lock in profits.
