By Alex Létourneau
Kitco News / Forbes
After reaching a collective bottom in December, last week’s negative price movement has thrown gold mining stocks back into uncertainty and speculation of future weakness is growing.
At different periods during the month of December, the GDX, GDXJ, HUI and XAU all reached their respective bottoms and after a strong start to the year, the mining sector is back in the red. Its gains were essentially wiped out over a three-day period, during gold’s significant decline last week.
“As a result of the last week’s actions, we’ve taken out the year-over-year positive returns of the gold mining stocks, so, that’s really amazing,” said Don Coxe, chairman of Coxe Advisors LLC, in a telephone interview with Kitco News. “Year-over-year gold is now down but it was up as of last week.