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. Continue reading "'Gold vs.', Pre-FOMC" →
This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.
Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?
Chart courtesy of TradingView.com
As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.
This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe" →
The real price of gold, as adjusted by commodities is making some nice baby steps toward rebounding. Here is a picture of the gold ETF vs. certain key commodity ETF’s and markets, that show the progress of what would be the most desirable condition (a rising real price) for a healthy gold bull.
And then of course there are other notable measures like Gold vs. Stock Markets. Here is the progress vs. SPY and EZU… Continue reading "The Real Price of Gold" →