Royal Gold in a Fool's Gold World

Gold bugs can only hope that their precious miners follow the lead of some of the more industrial materials miners this summer, namely BHP FCX PKX, among others, in terms of waking up from a multi-quarter correction. 

At the moment, though, they are staring down the business end of a fresh FOMC decision and statement later today, not to mention navigating the heart of earnings season. As a result, it remains to have much near-term conviction with respect to gold and her miners, as well as silver.

Nonetheless, as we always put in our due diligence inside Market Chess Subscription Services, there have been a few standouts in the space.

Recently, Royal Gold, below on the daily timeframe, has broken up and out from a sideways channel above all daily chart moving averages. Even as gold miners slumped, RGLD kept chugging on higher in recent sessions as it essentially ignored overbought conditions. 

With earnings approaching on August 9th, and the FOMC later today essentially an earnings report-type of risk for gold, Treasuries, and the like, we simply want to see RGLD now take a well-deserved pause to set up a lower risk long entry point. 

Either way, compared to ABX EXK GG, among other precious miners, you can plainly see the outperformance in RGLD which commands our attention. If gold miners do, in fact, follow the BHP and steel rallies higher into Labor Day then Royal Gold should continue to stand out in what has been a fool's gold word.