The simplest of updates to remind that the HUI/Gold ratio has remained intact throughout the sector pullback and that remains the case today as gold and silver continue to drop but the miners stabilize, for a day at least.
Here’s the HGR using HUI/GLD for a real time view. We would want to see the converging moving averages hold and so far they are. That is out of character with some bear market pullbacks where the miners take up the leadership to the downside without much prompting.
Gold and especially silver do look vulnerable to continued short-term downside but with support areas coming into view if the miners can keep this up it would be a nice show of strength and a character in this market we have not seen for years.
For reference, here is GDX trying to arrest its decline at the 50 day moving average. A word of caution is that it probably always was going to make an attempt here at this marker. Another caution is the gap down there at 20.50, which is in confluence with the SMA 200. So patience is probably a good thing. But I really am (thus far) impressed with the HUI/Gold ratio above.