Look at NUGT chart, there is a disconnect with gold prices. Is it fears of Obama starting WW3?
Gold stocks follow gold, but it cannot be traced 100% for every day and, especially, every minute of trading. Sometimes, gold price goes ahead of stocks and, sometimes, stocks go ahead of gold. It is fluid, normal market situation.
Regarding oil-gold link, it exists, but it is not absolute. Some miners have significant part of their costs linked to oil price. By the way, it is not true for IAG; all mines are connected to power grid and most of electricity comes from hydro installations. Anyway, oil part of cost, even if sizable, cannot have the same influence as revenue (gold price).
The bottom line is following. When gold has strong day, it is very good for a gold stock, even if stock price didn’t move on that particular day. Strong gold price means better earnings and it will transpire to stock performance anyway, now or later.
I second that. Price of oil is hurting the miners and it doesn't look like it is going to get better. Gold down 16% for the year, oil up 13% for the year. Not good for miners. But gold is slowly getting better. I'm adding a little today, but reserving a lot of funds in case it drops low again.
Just profit taking and technical traders trading the chart. A good opportunity to load up once again for another run if you have the funds. Unfortunately I jumped back in at the wrong time. Oh well.. This is a long term hold for me so not too worried.
it has been interesting..this is the first day that the metal has been down and the miners have been crushed for 3 days after the reversal of 3 days ago. ..so Iag down from 7.07 to 5.86 in 3 days with gold pretty much up or unchanged over the last 3 days...all other miners same way too although IAG move even more pronounced.So Iag down 17% in 3 days with Gld still holding around 1400 ...we should see a reversal with gld maybe down and gdx up soon