Thursday, 10 April 2014

Nearing the end of a major pull-back ?

Any major trend reversal never comes without any hick-up, questioning the reversal. Throughout the gold-miner bear market we have seen quite a few false recoveries, which were merely decent exit points allowing investors to mitigate their loss. In every occasion worse was to come. The major pull-back we faced in the second half of March is one of those key-events questioning the emerging trend. Anybody doubting the reversal should have sold by mid-March, the believers were and still are offered an opportunity to add to their positions.

After the clear result of the Crimean referendum for attaching the peninsula to Russia, there was much flexing the muscles, but very little violence. General stock markets resumed their uptrend and lately were correcting only on macro-economic data. Precious metals have been sliding as the ‘fear-component’ dwindled. April has brought more sideways movements for precious metals so far.

HUI / Gold, daily observations over six months till April 9
As usual, miners exacerbate the correction incurred by gold and silver. By end March, the HUI/Gold ratio slid back to 0.174, after putting down a two-monthly low at 0.168 on March 26. The ratio seems to recover very gradually, with gold miners trending more or less proportional to the yellow metal. On April 9, HUI/Gold stands at 0.1776. Are we nearing the end of the first major pull-back of 2014?

You find the usual updated graphs on HUI/Gold and SIL/Silver along with miners indices and the performance disparity graph on the GoldMinerPulse page.

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