I wanted to come back to previous post about death cross and its possible significance. In Q3 2016 it really was the time to sell all gold/gold stocks, although it came only and the end of correction, in  November 2016 when gold was already near $1200 level before hitting the $1140 bottom.

 

The situation now is far different as GDX/GLD is far more bullish compared with 2016, as the GDX is about to have a bullish golden cross if it continues to outperform the gld.

 

Conclusion: situation does look different than 2016 with GDX far stronger, so it is difficult to argue that gold has to suffer additional downside, however based on technical analysis of death cross it should have more weakness going forward.