I thought it might be interesting to have a look at one of the leaders of the bull run in gold. Royal Gold (
RGLD) has been an absolute standout in this regard. the 10year weekly view (chart above) illustrates the same negative divergence or non-confirmation exhibited by the GDX and HUI which I noted previously in my post
Gold and the Buck with the charts in
Ooops.... Forgot the Charts.
RGLD needs to take out $50 convincingly on VOLUME. It is one of the clear leaders in the sector and as such needs to lead not lag. If I one takes a step back from the excitement of the buffett table and starts to add up the clues, clues such as:
One might be inclined to be a tad cautious. I know the gold bulls will consider this anathema, pure heresy as they believe gold is going to 3, 4, or 5,000/oz. I have a hard time refuting that argument but as long as the above mentioned discrepancies remain I cannot rule out that gold may in fact go to 3, 4 or 5,000/oz...... but may do so via $650 or 750/oz.
Hence my cautiousness on gold.
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