Gold Stocks Leading The Way Higher
Gold stocks were one of the strongest groups today as GDX rallied over 4%. I've been posting numerous times over the past few weeks how these gold stocks should rally and now we're beginning to see money flowing into them.
As you can see in the above chart GDX is much closer to breaking the year high than gold is (see previous post for a chart of GLD). Gold stocks are clearly stronger than gold. If you look in the lower pane you will see the ratio line of gold stocks vs gold. A rising line indicates gold stocks are outperforming the metal. The ratio line rose again today even with gold being up 8 dollars which goes to show how strong these stocks really are.
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
2 comments:
Kept waiting for this to come down so I haven't bought into it yet. Whats a good price to get in?
Thanks.
If you didn't buy anything yet, I would wait for a one third retracement because there is too much risk if you buy it here. You would have to use a very wide stop which would turn the risk vs reward not in your favor.
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