Gold stocks still sleepingGold has created a new high it just hit $1565. That is $34 up for the day only. During the last few days gold is up around $60 but gold stocks are not doing much. A few are trading little bit higher some are even trading in red. When I look at a very long list of Canadian gold stocks I do not see any which is even trading close their 52 week high. Gold stocks are not trading up with Gold prices. Gold stocks are stalling & reflecting the true impact of surge in gold prices.
There is a total disconnect with the increase in Gold prices & gold stocks even though Gold stock are the first benefactor in the run up in good prices. On the other hand amrket indices are drifting higher constantly totally defying all fundamentals. The commodity stocks are not getting the surge they deserve because of the increase in corresponding commodity prices. Maybe when the markets start to reverse the trend & go into correction mode some of the money may move into gold stocks.
Some how money is moving into Gold but not in to Gold stocks yet. Maybe there is a lag.