Gold bullion climbed over $5.00 today to end at $519 which is the highest level in twenty-four years. Gold has now exceeded its 1983 peak at $514. Despite my concerns about a possible pullback around the $500 area, bullion shows no signs of slowing down. That may be partially due to the bullish action in gold stocks. Although the XAU Index had recently achieved a major bullish breakout, Newmont Mining (the biggest stock in the XAU) hadn't yet done so. Neither had the AMEX Gold Bugs Index (HUI). The next two charts show, however, that both have now joined the XAU in new high ground. The weekly bars in the first chart show Newmont closing over 50 for the first time in two years. The second chart shows the HUI breaking through its late 2003 highs to achieve a bullish breakout as well. The HUI/SPX ratio in Chart 7 has just broken a two-year down trendline. That's tells me that gold stock leadership is going to continue as is the bull market in bullion.
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