Thursday 15 December 2016

GDX - miners smashed lower with metals

With the precious metals increasingly weak after the fed raise rates, the related mining stocks were smashed lower for a second consecutive day. The ETF of GDX settled lower by a rather severe -4.1% @ $19.07, the lowest level since early March. Near/mid term outlook is bearish, unless >$25.

GDX, daily

GDX, monthly


As ever, regardless of broad strength in the main equity market, the gold/silver mining stocks are almost entirely dependent on the price of gold/silver.

Gold and Silver continue their mid term decline from the summer, and are already rather close to the multi-year lows of Dec'2015.

Seen on the giant monthly cycle, we're half way through December, and we're already -8.4%. At the current rate, we'll see a bearish MACD (blue bar histogram) cross in January. For the moment, there is absolutely zero reason to be bullish the metals.. or the related miners.