With continued weakness in the precious metals markets, did this major divergence just trigger a bottom in gold and silver?
The gold and silver markets are now showing a huge divergence which may prove to be a key in terms of seeing the bottom of this correction in the metals. Below we see that the price of gold (GLD used as a proxy) is hitting new lows (see chart below).
At the same time, the price of silver is also hitting new lows (see chart below).
Unlocking The Key: Here Is The Major Divergence
Meanwhile, the HUI (Gold Mining Index) is diverging by trading above recent lows (see chart below).
And the XAU (Gold Mining Index) is also diverging by trading above its recent lows (see chart below).
KWN also spoke with one of the top mining CEO’s today and he said, “The selling in the mining stocks is looking very tired right now and they are just looking for an excuse to rally.”…
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The divergence in the HUI and XAU mining indexes vs gold and silver is a major clue that a bottom may be forming. If the miners can hold above the recent lows that will give the signal that the correction has now officially come to an end and the uptrend in gold, silver, and the mining shares will resume. It will be very interesting to see if this divergence did in fact mark a bottom in gold and silver in the days ahead.
***ALSO JUST RELEASED: Look At These Markets Seeing Massive Waterfall Declines As Chaotic Global Trading Continues CLCK HERE.
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