Gold Producers Poised Like ‘Coiled Spring’ to Rally: Commodities

Bloomberg reported on the disconnect between gold stocks and bullion prices.

As quoted in the market news:

The benchmark NYSE Arca Gold BUGS Index (HUI) that includes Barrick Gold Corp. (ABX), Newmont Mining Corp. (NEM) and AngloGold Ashanti Ltd. ended last week at 17 times earnings, the lowest since at least November 2002 and below a five-year average of 37 times.

Click here to read the full Bloomberg report.