Gold up again, close to record highs, yet.... *PIC*
...Gold stocks continue to languish, with GDX (HUI too) closing in the red today. As a group, the senior Gold producers peaked back in early December at the same time bullion hit a new all-time high of $1430 per ounce. Since then, the miners have meandered down to sideways even though Gold reached a new fresh record of $1447 two weeks ago.
It's a divergence that should not be ignored by investors in this sector. Note the trend in OBV which shows money exiting these equities after each failure to close above the $61-62 resistance zone. Also, rallies have had anemic volume to support them since December.
All this begs the question: If Gold stocks can't rally on a day when the POG has a solid gain, with Silver also continuing to surge higher, what happens to these things when a correction of as little as $20 comes along, or, market gods forbid, something of a more serious magnitude? The miners appear to be very vulnerable to such an event currently. Still, remaining in GDX's favor is the fact it continues to trade above all 3 MA's shown here and has trendline support coinciding with the 200dma...that entire $56-58 zone should be watched closely if price returns to test it.