Gold Stocks Play Catch Up It has been quite a bifurcation: “For only the seventh time in more than five decades, gold futures closed higher than 91% of all other prices over the trailing three years as a gold mining index resided in the bottom half of its range with a reading of 36%, creating a massive divergence,” wrote Dean Christians, senior research analyst at SentimenTrader, on Wednesday.
In the past, when the gold price was similarly at the upper end of its three-year range and miners were at the bottom end, the latter group was higher six months later every time, per data from Christians. The NYSE Arca Gold BUGS
HUI
index—which tracks gold-mining companies that don’t hedge their production, making their results more sensitive to gold-price changes—boasts a median return of 22.5% over such periods.