A paragragh out of David Pescods Friday Letter:

"As far as what is going on with gold right now, Ross
Clark writing for Institutional Advisors notes, “Silver is
down 35%, the senior mining indices 25%, juniors 46% while
gold is up 5%. The relative strength of the mining shares to
the gold bullion price is at extremes only seen five times in
the past one hundred years. This is clearly an attractive
time to be accumulating positions.”
Clark continues, “The weekly charts of the mining indices
are producing the most oversold readings since November
2008. The first week with a higher close would indicate that
the downside momentum has come to an end. While there
could be a re-test of support as experienced in 2008, we’ll
look for the 50-week exponential averages to provide the
first significant resistance.”
Then he adds, “Following the breakout of the descending
triangle, Gold bullion has flirted four times with the 61.8%
support (1625) of the December through February rally. A
close through $1690 on expanding volume would suggest
that a base in nicely in place.”