It looks like the precious metals market wants to tell us something important. Look at these two charts:
The upper panel shows the relationship between GDX and gold. The lower panel shows gold prices.
Now, since September 27 GDX has been going up (the blue arrow) while gold has been going down (the red arrow). Interestingly, the shares of precious metals mining companies are stronger despite lower prices of gold.
Another ratio, silver to gold, is also sending positive signals with silver being stronger than gold. While the signal sent by the second ratio (silver:gold) are relatively frequent, the signal sent by the first ratio (GDX:gold) is a rare event.
Note that both ratios are sending positive signals despite a stronger US dollar…