Gold continues to slide today, but the mining stocks are not following its footsteps. The HUI and XAU indices as well as the GDX ETF are basically flat today, so we thought that you might be wondering if this is a bullish sign.

In our view - it’s not. There is a good reason for mining stocks to show strength at this time and that’s a rally in the general stock market. Besides, the HUI Index remains below the long-term declining resistance line, so the outlook remains unchanged and bearish.

Moreover, please note that silver moved lower right after its turning point and in tune with it. The implications are bearish as well.

Summing up, the outlook for the precious metals sector remains bearish.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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