Friday, 6 November 2015

GDX - imploding with the precious metals

With Gold and Silver pressured lower by a strengthening USD, the related mining stocks continued lower for a second consecutive week. The ETF of GDX saw a severe net weekly decline of -9.8% @ $13.49. Downside into year end looks probable.. to the 12/10 zone.

GDX, weekly

GDX, monthly


The precious metals face the old problem in that a stronger USD is a strongly negative pressure.

As ever, if the precious metals are weak, the miners will be dragged lower, regardless of however strong the main equity market might be.

Outlook into year end for the metals is bearish, and by default... that will also apply to the related mining stocks.