• 2 days America's Semiconductor Shortage Is Just Getting Started
  • 2 days America's Semiconductor Shortage Is Just Getting Started
  • 5 days The EU Begins Backtracking On China Trade
  • 6 days Americans Are Sick Of Unfair Taxation
  • 8 days No Jab, No Job: The New Hardline Policy of U.S. Employers
  • 10 days What’s Included In Biden’s $6 Trillion Economic Plan?
  • 11 days The “Great Car Comeback” Brightens Oil Demand Outlook
  • 12 days The 3 Most Profitable Covid-19 Vaccine Stocks
  • 14 days Beijing Launches Digital Currency To Break AliPay-WeChat Duopoly
  • 15 days The New Economic World Order After Covid-19
  • 19 days 3 Signals To Watch For A Stock Market Correction
  • 21 days Netflix Earnings Red Alert: Subscriptions Could Underwhelm
  • 22 days Wall Street Banks Are Back
  • 22 days Elon Musk’s SpaceX Scores Big Win Over Jeff Bezos’ Blue Origin
  • 23 days Which Country Is The World’s Largest Investor In Batteries?
  • 24 days Are Bitcoin’s Environmental Risks Overblown?
  • 25 days Why The Gold Rush Ran Out Of Steam
  • 27 days Coinbase IPO Explodes, But Fails To Keep Its Momentum
  • 28 days China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 29 days The Pandemic Has Culled The Middle Class
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  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