I came this close – – THIS close – – to doing a post yesterday in which I offered up again the basis behind being short the gold miners, but my discomfort with seeming capricious got the best of me, so I didn’t. As I look at gold now, down $8.40 as of this typing, I regret not doing so, because renewed strength in the dollar versus the Yen is smacking gold down once more.
Being bearish miners could still be one of the great trades of 2017, but the uncertainty of the USD/JPY is a major player here. We are definitely at a level in which the dollar could recover its losses against the Yen, which would throw a millstone around gold’s neck in a big hurry. I might just re-enter DUST today in an attempt to take advantage of potential miner weakness.
