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It is generally agreed that in a Gold Bull Market, the gold producers lead the way, by outperforming gold bullion.  To examine this trend we visit and pull up a chart that compares mining stocks (GDX) to gold bullion (GLD).

This index bottomed in March and since then the miners have moved ahead of gold bullion.¬† The first hurdle, at the 50DMA (blue line) was overcome in April.¬† The next hurdle, at the 200DMA (red line), took several months, but it is now in the process of being ‘put in the rear view mirror’.¬† The blue arrow points to the fact that for the past three days the daily range has been above the resistance.¬† The supporting indicators (top and bottom of chart), are positive.¬† A rise above the green arrow will convince a lot of investors that the gold sector is ‘the place to be’.¬† The timing is likely to coincide with the resumption of trading, after the US July 4th Independence Day Holiday.

DISCLAIMER:  Please do your own due diligence.  Peter Degraaf is NOT responsible for your trading decisions. 

Peter Degraaf is an investor with more than 50 years of experience.  Google him, or visit

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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