It appears that some of the U.S.'s biggest investment names have been increasing holdings in gold mining stocks and the biggest gold mining stock ETF, while they may have been liquidating bullion related investments. This would appear to be in recognition that, as we have pointed out in these pages a number of times, that the gold mining sector has been largely passed by in favour of bullion of late, yet was going to see huge Q3 profit increases due to receiving average gold prices for their unhedged output at over $1700 an ounce. This opinion has subsequently been borne out by actual Q3 profit figures which have risen by triple digit percentage figures virtually across the board.

Eoin Treacy's view The NYSE Arca Gold Bugs Index has been ranging mostly above the 2008 highs since late last year and pulled back last week from the upper side near 600. It has quickly moved from a short-term overbought condition to the short-term oversold condition and potential for a bounce has increased.

Among the leading constituents of the Index, Randgold Resources is unwinding a short-term overbought condition and a sustained move below $100 would be required to question the consistency of the medium-term uptrend. Yamana Gold has so far held its breakout from an 18-month range. Newmont Mining has also partially unwound a short-term overbought condition having hit a new all time high earlier this month.