Concern about a coming rate hike in March could put downward pressure on both equities and metals/miners too… and boost USD… so that is another answer to your question. But we will see what Fed does on 3/15…

Regarding that, this is my reply via email last night to a member of the site that asked the same question:

You bring up a good point about how gold & the miners might act if the market corrects. That part can be tricky as although there is often a flight to safety in gold when the US & global markets correct, at times I’ve seen gold move lower as well & even on some occasions, I’ve seen gold rally or at least hold up while the mining stocks were sold off with the stock market.

Putting all that aside, based solely on the charts of gold, GDX & the US dollar, I’m leaning to more downside in gold & the miners but not as much as I was a week or two ago as the bounce in the US dollar that I was calling for may have already run its full course. That would mean dollar down now which would likely mean gold (and the miners) up.

Bottom line is that my degree of confidence isn’t very high at this point but feel free to bump me next week if I haven’t posted an update on gold & the miners on the front page.