• 265 days Could Crypto Overtake Traditional Investment?
  • 270 days Americans Still Quitting Jobs At Record Pace
  • 272 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 275 days Is The Dollar Too Strong?
  • 275 days Big Tech Disappoints Investors on Earnings Calls
  • 276 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 278 days China Is Quietly Trying To Distance Itself From Russia
  • 278 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 282 days Crypto Investors Won Big In 2021
  • 282 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 283 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 285 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 286 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 289 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 290 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 290 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 292 days Are NFTs About To Take Over Gaming?
  • 293 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 296 days What’s Causing Inflation In The United States?
  • 297 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Fear Not Gold Bugs, Gold Ratios Well Intact

What has been going on since mid-February is a burst of the 'inflation trade' as evidenced by silver's leadership in the precious metals sector. This opened the barn door for all kinds of inflated animals to flee into the light of day, and for commodity and inflation boosters to do their thing. As often happens with silver, things were pushed to and even through their limits. Silver went up, oil went up, base metals went up and stocks went up.

But what we should do is retire back to some of the things that actually indicated bullish for the gold sector well before the mini hysteria (and market relief) cropped up. A pullback/correction in gold stocks would be an opportunity.

Gold vs. Silver took a real hit and now is bouncing, unsurprisingly as USD makes a final support bounce attempt of its own.

Gold/Silver Ratio

Gold vs. Commodities has been in consolidation and could be breaking the bull flag.

Gold/CRB Index Ratio

Gold vs. Crude Oil got drubbed of late but remains in a big picture uptrend.

Gold/Crude Oil Ratio

Gold vs. 'commodity currency' CDW is breaking up from a bull flag (a Handle to a Cup and Handle).

Gold/Canadian Dollar

Gold vs. 'commodity currency' XAD is also breaking upward from a bull flag.

Gold Australian Dollar

Gold vs. S&P 500 remains bullish and possibly breaking consolidation. The stock market is down in pre-market and so is gold? What is the meaning of this?!? The meaning is that gold pumped with all the other stuff recently and so some of that stink will stick to it in the short-term.

Gold/S&P500

Gold vs. Euro STOXX 50 is still very bullish.

Gold/STOXX50

Gold vs. London is very bullish.

Gold/FTSE

Gold vs. Emerging is bullish and starting to break consolidation.

Gold versus Em's

Finally, Gold vs. Long-term US Treasury Bonds is still very constructive off the bottom in an upward tilting inverted H&S pattern above the moving averages. This one is a view of the risk 'off' hard asset compared to the risk 'off' paper debt instrument subject to government borrowing/spending and Federal Reserve policy machinations. So, it's a confidence indicator.

 


Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH.

 

Back to homepage

Leave a comment

Leave a comment