By: Gary Tanashian of biiwii.com
We are well along in the precious metals correction and have downside targets for gold, silver and the miners. In order for that to be a ‘buy’, the sector and macro fundamentals will need to be in order. Some of those are represented by the gold ratio charts vs. various assets and markets. Below are two important ones.
Gold vs. Stock Markets has been correcting the big macro change to the upside since leading the entire global market relief phase (potentially out of the grips of global deflation) earlier in the year. A hold of these moving averages, generally speaking, keeps a key gold sector fundamental in play as the implication is that conventional casino patrons are choosing gold over their traditional go-to assets, stocks. A breakdown from the moving averages and it’s back to Pallookaville for the gold “community”.
Despite gold having topped out (in nominal terms) months ago, the gold vs. stock markets indicators are intact. [Read more...]