Powerful net weekly declines

With the USD jumping higher as the probability of an interest rate hike at the Dec' FOMC reaches almost 100%, the precious metals are imploding. Gold and Silver saw net weekly declines of -4.7% and -4.9% respectively. Outlook into end year is now extremely bearish.


GLD, weekly

SLV, weekly

Summary

The Oct' net monthly gains are now largely negated, with Gold/Silver set to break new multi-year lows before year end.

By definition, a stronger USD will put downward pressure on most commodities, and particularly so, the precious metals.

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A monthly close for the USD >DXY 100, will offer target upside to the 120s in 2016.. and that would likely result in Gold falling at least to the next key fib' retrace in the $900/875 zone. That would likely equate to Silver 12/10.

If correct, the related mining stocks will be similarly impacted.