Year to date, base metals have outperformed gold. Platinum has recaptured higher prices than gold. Even silver has outperformed gold - the usual interpretation is that silver leads gold which would be positive for gold. But this time it seems that silver is merely putting on its industrial hat.

The implications are clear - fear has come out of the market and there is optimism about the economic future. Until this changes, gold stocks will probably continue to lag.

I suspect this will reverse sometime during the summer - a lot of potential land mines out there that could trigger it.