From The TSI Trader:
Last month, when I sensed that gold bugs were about to lose their lunch over the price movement of the U.S. Dollar, I offered a post that should have relieved their anxiety a little. In hindsight, it appears my analysis was correct (fortunately).
The present anxiety seems focused on the HUI miners index and it's frightening under-performance of seemingly every asset class and market sector imaginable.
This post will make the case that the HUI is behaving exactly within the historical context of its bull market and should be relatively near its ultimate low both in terms of price and timing.
I will admit that the most recent 4 months, in particular, have indeed been agonizing. Painfully agonizing. But viewed in the context of similar HUI setups, such as occurred in January-March 2003, March-May 2005, September 2006, and July 2007, perhaps one can recognize our present situation as something we've not only seen before, but also have every sensible expectation for a bullish resolution.
To get to the specifics, let's look at...
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