All weakness has been bought as a wall of worry has been built and the sector emerges from a historic low that could be on par with the 1942 low in the stock market.
In recent weeks readers and followers of various gold centric websites have been bombarded with bearish commentaries from pundits and analysts forecasting a correction.
Gold and gold stocks are trading above the 400-day moving average which has been key resistance since 2011. Holding that support in the days or weeks ahead would offer confirmation that a new bull has started.
While good things are happening under the surface for Gold, its lack of a strong rebound in recent months argues that such a rebound is in the future but not imminent.
. The recent relative strength from the gold miners particularly in the face of new lows in Gold, coupled with the oversold condition of the metals suggests a sector rebound is developing.