From Sprott Money27 Jan 2022 20:58
What caused the dump in Gold miners? That’s anyone’s guess, but with the FOMC coming next week and the Fed likely to be dovish to avoid an all-out crash in stocks, I suspect the Banks are trying to squeeze out the last few weak hands ahead of a monster rally.”
The Fed decided to take a hard line and persist with its rate hikes and taper mantra despite the fact that stocks have been hammered since the FOMC minutes on January 5. Now they run the risk of even lower lows as the markets test the Fed’s resolve. Hardly bearish for metals and miners. But it would justify another intervention by the Banks (which remain short) ahead of said policy reversal.
In summary, I’ll put it this way: I have a hard time believing this latest dump in metals and miners is organic or natural, especially under the circumstances. These are certainly not “free markets”.
Now we need to focus on where the support levels are: