HUI and GDX have joined GDXJ in making lower lows to the early November low. That was a moderate negative, technically. But as you can see, HUI is getting oversold by RSI and is thus a candidate to bounce.
A tailwind to a bounce could be in the form of long-term yields, which have been dropping amid concerns about our new friend Omicron and this morning a less than stellar jobs number. This is as the Fed would wish as it seeks to clean up its inflationary mess, which got way too much airplay (in my opinion) in 2021 for their liking.
Here is the 20+ year Treasury bond fund looking bullish. This is indicative of the opposite to the cyclical inflationary backdrop that we have long noted does not do gold mining fundamentals any good.
Of course, my theory is that inflationists sell gold stocks when inflation fails or gets interrupted, and they are the market. So it is debatable whether or not this would be an effective price altering tailwind as opposed to just a short-term fundamental tailwind for the miners. But with HUI oversold and yields dropping I thought it worthy of note. I would not be surprised to see gold stocks bounce soon.