Yesterday's brutal selloff in gold miners (GDX +0.6%) does not create a buying opportunity,...

|By:, SA News Editor
Yesterday's brutal selloff in gold miners (GDX +0.6%) does not create a buying opportunity, J. P. Morgan says, noting mining costs will keep rising even as gold prices likely will stay within a range. Miners, which begin reporting earnings at the end of this month, thus will continue to show declining profit margins. Also, Q2 tends to be weak for metals; combined with dollar strength, upside for the stocks is limited.