Gold traded as low as $1045 on Thursday but the miners continued to diverge in a positive fashion. The recent relative strength from the gold miners particularly in the face of new lows in Gold, coupled with the oversold condition of the metals suggests a sector rebound is developing.

The daily candle charts of GDXJ, GDX and Gold are shown in the image below. Several weeks ago Gold lost $1080 support and made a new low. The miners failed to make a new low then and continued to hold their lows as Gold grinded lower below $1080/oz. Now the miners could reach a one month high very soon while Gold could rally back to resistance at $1100/oz or slightly higher.