Wednesday, 30 November 2016

GDX - a dire November for the miners

With the precious metals of Gold and Silver seeing rather severe net monthly declines, the related mining stocks were naturally dragged massively lower. The ETF of GDX settled the day -1.9% @ $20.83, which made for a net monthly decline of -15.1%. Near/mid term outlook remains outright bearish.

GDX, daily

GDX, monthly


Its pretty straight forward...

Higher USD - as interest rate expectations are really starting to ramp.
The higher USD is putting natural downward pressure on the precious metals.

With economic/market sentiment at the best levels since 2007, the precious metals are losing more of their inherent 'fear bid'.

With the precious metals lower, the Gold/Silver miners have duly repriced to the downside. The only issue now is whether GDX puts in a higher low, or breaks below the Jan'2016 low of $12.40.

The one indirectly bullish aspect for Gold/Silver is Copper

Copper, with Gold/Silver, monthly, 20yr.

Its difficult to see Copper continue to climb across much of 2017, without Gold/Silver not eventually catching up.