Gold stock rally ‘foreshadows a trend’

By Myra P. Saefong
MarketWatch

goldnugs-160The outperformance of gold-mining stocks over gold this year points to some price gains ahead for the metal, but don’t expect a big rally.

A little over halfway into the year, mining stocks have recouped roughly half of what they lost in 2013 and scored about double the percentage gains seen in gold prices.

Gold-mining stocks “generally lead gold, both in the direction of the moves and in the extent of those moves,” said Brien Lundin, editor of Gold Newsletter.

The NYSE Arca Gold Bugs Index has climbed about 22% year to date, after losing 56% last year, while the Philadelphia Gold and Silver Index has gained 21% this year following a loss of 49% in 2013.

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