Gold mining stocks index (XAU) analysis
Since the mid august 2007 bottom the gold mining indexes appreciated along the price of gold . Generally uptrend was divided into two phases :
From mid August to mid October the XAU (the heavy options volume index) outperformed gold – probably due to positive trend (at that time) for the general equity markets.
From mid October 2007 till mid March 2008 the XAUunder performed the price of gold. - probably due to bearish trend for the general equity markets.
Note that currently the XAU/GOLD ratio is lower(on an end of the day basis) then it was at the August 2006 bottom !
Cyclically Important technical points:
the low of 167.
the low of 157.
Since the late 2000 bottom this index (along other mining indexes) is up several 100's percents.