With precious metals starting the week on a rather negative note, the related mining stocks were seriously impacted. The ETF of GDX settled lower by a significant -3.1% @ $13.83. New multi-year lows look due as Gold looks inevitably headed for the $1000 threshold.. and probably below that.
*it is notable from the monthly chart, the mining stocks have traded in a broadly narrow trading range since August.
Commodities as a whole remain broadly weak... and it is no surprise to see renewed downward pressure into year end.
Gold still looks set for the giant $1000 threshold, and that would likely equate to another 7-10% off most mining stocks.
If Gold 900/875 in summer 2016 - as I suspect, most miners will likely be at least 15/20% lower than today's closing levels.
More than anything, I would argue there is yet to be capitulation within the precious metals mining sector, and the same goes for Oil/gas sector. Until there is capitulation... prices will remain broadly weak.