Gold priced in Euro and the Hui-index

Many gold bulls argue that gold remains very strong in various currencies such as the Euro.
Let’s have a look at it:

Gold priced in Euros has been in an uptrend since early 2005, and both the 50 days MA and 200 Days MA are rising.
the 50 Days MA is above the 200 Days MA, so there seems nothing wrong with the uptrend:

Chart courtesy

However, when we have a look at the weekly chart, we can see that negative divergence is building:

Chart courtesy

IF gold priced in Euros would make a higher high, it should be accompanied by strength, so the RSI becomes overbought again and makes a higher high.
If price would make a higher high, but RSI and MACD fail to set a higher high, the negative divergence will continue to exist, which would be bad news for (Euro) gold bulls on the longer term.

Now let’s have a look at the HUI-index on a shorter term:

Chart courtesy

We expect resistance around 560.

When we compare the HUI-index to Gold, we can see that the miners (represented by the HUI-inex) have been underperforming gold since early April 2011 (as the ratio declined):

Chart courtesy

Price has fallen below the green horizontal support line, which will likely act as resistance now.