GDX - miners restrained by the weak metals

Despite the latter day bounce in US equities, the mining stocks sure didn't benefit. With Gold and Silver prices on the slide, the Gold mining ETF of GDX dropped a significant -3.3% @ $22.89. Near term outlook is mixed, and will be highly dependent upon how the metals trade post FOMC announcement.


GDX, daily

Summary

With Gold/Silver prices weak, along with the main US equity market, it was no surprise to see the Gold miners lower.

Yes, we're still holding the short term bullish trend, but we've seen this sort of price action dozens of times since late 2011...so far..its never ended well for the mining bulls.


Broader weakness

My mid-term outlook is for further weakness in the precious metals. If that is the case, then the miners will be held lower, even if the broader US equity market can rally later this year.

A fair question remains, will GDX hit/test the 2008 low in the $15s..before this major multi-year collapse concludes? Right now...I still think there is very significant possibility, especially if Gold slips to the big $1000 level.