"Gold-mining stocks — not the bond market — may surprisingly be the most sensitive barometer for traders’ Federal Reserve worries.
Market Vectors Gold Miners ETF (GDX) dug itself a fresh five-year low Monday. The ETF is down 4.7% to $21.24 this afternoon. Market Vectors Junior Gold Miners ETF (GDXJ), representing small, more speculative companies, is down by 5.6%.
Trading is extreme in the leveraged-mining ETFs, where Direxion Daily Gold Miners Bear 3X Shares (DUST) and Direxion Daily Gold Miners Bull 3X Shares (NUGT) are moving by nearly 14%.
The catalyst:Today's economic data. BTIGstrategist Dan Greenhaus called this morning’s manufacturing data — which climbed to the highest reading since 2011 — “stunning.” He meant it in a good way — meaning “bad” for precious-metals:
Given the relationship between the index and broader growth and given its statistical reliability, our view that growth will pick up in coming months is validated by today’s data point.
SPDR Gold Trust (GLD), reflecting bullion prices, is down 2.2% on Monday to kick off December’s trading. Gold’s price is coming off the worst November loss in 35 years".
Source; Barron's
