..it is difficult to know what Gold is going to do in the short term amidst geopolitical conflict that could escalate or resolve.
..but the market sure has a way of blindsiding us.
..just a week ago, amidst rising Middle East tensions, gold stocks were looking like breaking new ground and it would not surprise me that it had attracted a lot of market participants into them. What's not to like during a geopolitical turmoil?
..But Gold stocks are not Gold, and there have been times it outperforms the relic and times when it underperforms.
..US$ Gold is slightly higher +0.11% the past week and+4.91% the past month
..AUD Gold +0.22% the past week and +3.72% the past month
..GDX +0.36% the past week and +12.57% the past month
..XGD however -4.74% the past week and +5.19% the past month
..RMS -8.11% the past week and +0.98% the past month
..EVN -11.63% the past week and -3.37% the past month
..NST -5.45% the past week and +8.47% the past month
..NEM +7.72% the past week and +12.81% the past month
..CMM +6.38% the past week and +18.32% the past month
..SPR -8.76% the past week and +1.50% the past month
..WAF -8.86% the past week and -6.72% the past month
..RRL -6.13% the past week and +0.99% the past month
...and as can be seen above, our Aussie gold miners have for whatever reason (probably instos downgrade as they did to EVN and NST) have underperformed relative to GDX and Gold the past week in quite a notable way.
...to me, this looks like instos re-allocation and profit taking and 'follow the price' retailers capitulation. GDX has held its ground rather week despite rising +12.57% the past month. And if it wasn't for NEM highly weighted influence on XGD, XGD would have been even weaker.
