Justa's Dive Bar

[Ace Hanlon]

I see two major divergences in the gold sector -- one bullish one bearish.

On the positive side the HUI continues to act much better than gold bullion.

On the negative side the gold rally failed at $650 resistance despite a drop in the dollar near its cycle low and bullion pulled back sharply once the buck bounced.

I would like to see bullion start to ignore dollar strength before getting short-term bullish.