Miners Have Already Rallied: Will Metals Follow?

When one looks at gold and silver prices and their moves yesterday, it might seem that nothing happened in the precious metals market.

That’s far from the truth because the real action took place in mining stocks. Miners moved higher and the volume that accompanied this move was rather average. The fact that miners rallied without a rally in gold or a decline of the dollar is bullish for the short term.

The interesting phenomenon was the intra-day decline right before the markets closed in the U.S. These reversals are bearish signs for the short term that contradict the bullish signal from mining stocks.