As of last Friday 6/2/2017, Gold has pushed upward in a steady trend line that is beginning to show signs of topping out. The miners on the other hand have been showing a definite weakness for the past few weeks, in direct opposition to Gold. Pay attention to what the miners are saying. The entire metal sector is flashing warning signs, and gold and silver will soon follow suit.
The above chart plots the XAUUSD and the HUI, and you can see the divergences in the two indexes. You can see two recent instances where the HUI has declined dramatically for an extended period of time, and gold continued to rise and eventually top out. When gold tops out and starts its decline, it puts more pressure on the miners, and their downtrends accelerate together until there is another capitulation event.
People are currently assuming gold will keep going up without ever even considering what could happen once the dollar rallies.
Watch out for the Fed to throw a monkey wrench in the works at their next meeting on June 14th.
The above chart plots the XAUUSD and the HUI, and you can see the divergences in the two indexes. You can see two recent instances where the HUI has declined dramatically for an extended period of time, and gold continued to rise and eventually top out. When gold tops out and starts its decline, it puts more pressure on the miners, and their downtrends accelerate together until there is another capitulation event.
People are currently assuming gold will keep going up without ever even considering what could happen once the dollar rallies.
Watch out for the Fed to throw a monkey wrench in the works at their next meeting on June 14th.