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Are Mining Stocks Signaling Something About This Gold Rally?

The Miners are not following gold's rally, so is it suggesting that metal not get ahead of itself?

KITCO NEWS - Gold is getting a boost from the turmoil surrounding Donald Trump's administration, climbing for a fifth day and posting its longest run in a month. However, mining stocks were not rallying as much as the metal. Are the miners signaling that gold's run will come to a halt possibly into the next U.S. Federal Reserve meeting in June? Mining stocks have fallen below their 50 and 200-day moving averages and are even struggling around their 400-day moving averages -- which provided support in December 2016. Vince Lanci, columnist for marketslant.com and the founder of EchoBay Partners, joins Kitco News to comment on the gold stock and physical gold divergence. Gold prices were ending the U.S. day session with solid gains Wednesday on safe-haven demand and amid an eroding U.S. dollar index. June Comex gold settled the day at $1,258.70 an ounce, up 1.8% on the day while July Comex silver settled at $16.906 an ounce.

This article is commentary by an independent contributor.

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