Loading ...XAU to Gold ratio Break out???? Update
XAU to Gold ratio stock on monthly has now turnup and now above 20 indicating PM sector has bottom after many years.
Refer to last post>
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“The XAU/GOLDratio shows when gold stocks are expensive or cheap compared to gold. The speed of the rise and fall of this ratio determine by the RSI help to find bullish and bearish signals. When this ratio plunges and the monthly RSI falls below 35 then a bottom is not far off and sets up the buy signals. The second part of the signal comes when the Monthly slow Stochastics of the XAU/GOLD ratio turns up from below 20. The previous six signals were all successful and four lead to over 100% gains. The two that lead to less then 100% gain came in 1998 and 1999. It is worth noting that in the last 28 years only one time before (2008 low) has gold stocks been this cheap compared to gold.”
Below are daily monthly and weekly charts of the ratio.
