by Alec Gimurtu , The AU Report:
The Gold Report: Since November, there’s been a decisive break between the S&P 500 and gold, bullion and the AMEX Gold BUGS Index (HUI:NYSE). The HUI has provided leverage to gold, but it’s been leverage to the downside. There are new highs on the S&P 500 almost daily. Does that mean that you’re looking for new lows in mining equities?
Jordan Roy-Byrne: There’s been a negative correlation between precious metals and the equity market that became quite pronounced in November. However, the negative correlation really began in the summer of 2011, when gold peaked at $1,900/ounce ($1,900/oz) and the HUI gold stock index and Market Vectors Gold Miners ETF (GDX:NYSEArca) also peaked.
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