For GT Blog February 12, 2009

The TSX Global Gold Index is now into week 13 of an intermediate cycle advance which typically can span 12 to 16 weeks

Now at a gain of over 50 per cent and well advanced in terms of weeks - we have satisfied the cyclic issues of cyclic magnitude and cyclic duration

In other words the November 2008 - February 2009 run-up in the gold stocks could be over-done - but there could be a reason for the intermediate cycle advance in the precious metal stocks to extend for several more weeks

Aside from an over-bought US dollar - the gold stocks were the victim of a bearish stampede following the March 2008 peak in bullion prices - the average gold stock lost about 50 per cent in the liquidation from March 2008 to October 2008 - It is the rebound from depressed levels that could extend the current rally in the gold stocks


TSX Gold Stocks and Gold in CDN dollars