Fundamentals haven't changed, page-439

$1296 is the range top and until it is decisively broken, it remained enveloped in the range. It is always difficult to know if range break to the up or down side. On the weekly I can see above $1307 presents a lot of congestion. XJO is a similar makeup and it is trapped in a tight trading range.

I don't put much attention to the NK conflict but FOMC minutes suggest that the chances of a rate rise this year is pretty remote. As a result the 10y yields got slammed but I am more interested what the bond holding reduction will do to this yield.

The dilemma is to chance buying at premium or to wait for some type of pullback. I am not keen on the dead beats in this sector because if the current momentum in gold price does not trigger premium valuation then it is obvious what happens if gold price should roll over. Recently I have noticed that SAR was the best of the pack of up trend gold stocks but that divergence is now reverting to the mean. As usual I only see them in hindsight!