Gold Miners Correction Continues - Where Does It Stop?

Gold and gold miners have sold off significantly over the past six weeks.

With the Bank of Japan and FOMC decisions immient, we need to prepare for the next move.

A dovish BOJ may embolden the Fed to raise rates this month.  This is a secondary premise.

The primary one is the BOJ does very little and the Fed puts off a rate hike for another few months.

Our estimate of market reaction is a relief rally for miners followed by more choppy price action once the announcement is made.

Any strong pullback in gold or miners is likely to be bought and is a buying opportunity in our view.