Usually, when gold breaks its technical support, precious metals related shares are following it. Let us look at the chart below:
As the chart shows, this time is different. Gold broke its support in mid-November but GDX, GDXJ and XAU (gold and silver mining companies and juniors) did not follow it. All indices are still above their supports. It means they are stronger then their leading indicator (gold). In my opinion, it is a slightly bullish development for gold bugs.
This pattern is supported by another positive development - look at the chart below:
Precious metals stocks are not weaker than the broad market (represented by S&P 500). As my readers know, PM shares have been lagging behind S&P500 since 2011. This time they hold firmly.
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