GDX monthly
GDX daily
Summary
With gold lower for a fifth month, and silver cooling for a third, its not exactly a surprise to see the gold miners follow to the downside. The August break of support was decisive, and we've already seen GDX break below the Dec'2016 low of $18.43.
The m/t outlook for gold and silver is bearish, with GDX vulnerable to a FULL retrace back to the Jan'2016 low of $12.36. As a side note, its notable that Silver saw the lowest monthly close since Jan'2016.
Lets take a look at two of the key miners - which are the two biggest components of GDX, Newmont Mining (NEM) and Barrick Gold (ABX)
NEM
An August net monthly decline of a fierce -15.4% to $31.03, back to levels from Dec'2016. Any price action in the 28s will offer a bearish run to the 22s.
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ABX
A fourth consecutive month lower, settling -6.6% to $10.42, the lowest monthly settlement since Jan'2016 - when the broader mining complex was flooring.
Summary: whilst both companies are fundamentally sound, the m/t trends are absolutely bearish into late summer/early autumn. The related precious metals of gold and silver are m/t bearish, and offer ZERO sign of a floor/turn.
Arguably, even the most bold of gold bugs will leave ABX, NEM, and GDX... well alone.
