Gold market continues to extend higher with uncertainties in pandemic and ultra-loose monetary policy by central banks. It has printed a 7 year high of $1779 and shows no sign of stopping. It has broken to new-all time high against many other major currencies, such as Euro, Pound Sterling, and Yen. Gold stocks should benefit from a rising gold market. Despite the strong performance in 2019 and 2020, they have yet to recover from the 2010 selloff.
In a bullish gold market, the large-cap companies usually rally first. Afterwards, the mid-tiers and juniors will catch up at a faster and higher clip as market advances. Good news is that unlike the 2001 – 2011 bull market in Gold, Gold miners learn their lesson and keep costs in check even with rising gold price.
![](https://elliottwave-forecast.com/wp-content/uploads/2020/06/gold_margins_2020.06.png)
Gold should continue to benefit going forward with unorthodox monetary policies, negative interest rates, and unsustainable debt levels. In this environment, mid-tiers and juniors (GDXJ) can soon start to outperform.
GDXJ Monthly Elliott Wave Chart
![GDXJ Monthly Elliott Wave chart](https://elliottwave-forecast.com/wp-content/uploads/2020/06/GDXJ-Monthly20200629081644.jpg)
Gold Miners Junior (GDXJ) ended the grand super cycle correction in 2016 at $16.87 with either wave ((II)) or wave ((b)). Since then, it has consolidated for 4 years and about to breakout to the upside. Up from January 2016 low, wave I ended at $52.5, and pullback in wave II ended at $19.52 in March 2020 low. A break above wave I at 52.5 in the next few months should confirm the next leg higher has started.
GDXJ Daily Elliott Wave Chart
![GDXJ Daily Elliott Wave chart](https://elliottwave-forecast.com/wp-content/uploads/2020/06/GDXJ-Daily20200629083215.jpg)
Daily Elliott Wave chart on GDXJ above suggests the pullback to $19.52 ended wave II on March 13, 2020 low. The pullback coincided with the selloff in global indices due to the Covid-19 breakout around the world. Since then however, the ETF has recovered very strongly and currently at the level above the pre-Covid 19 selloff. The ETF should continue to be supported in the dips against the March 2020 low for further upside.
GDXJ 4 Hour Elliott Wave Chart
![GDXJ 4 hour Elliott Wave chart](https://elliottwave-forecast.com/wp-content/uploads/2020/06/GDXJ-4-Hour20200629084320.jpg)
GDXJ 4 Hour Chart above shows that the ETF rally from March 16 low is unfolding as a 5 waves impulsive Elliott Wave structure. Further upside still can’t be ruled out before cycle from March 16 low ends. The 5 waves higher should end wave ((1)0, then it should pullback in wave ((2)) to correct cycle from 3/13/2020 low in 3, 7, or 11 swing before the rally resumes.