Loading ...GOLD:USD Ratio
I found this the other day when Dave posted his gold/usd chart. I figured I would have time to post it without it getting seen but of course Sir Rambus found the same ominous pattern. But, if you stare at any chart long enough you can imagine a different outcome. The deal I can’t figure out is the miners…that part just doesn’t add up in a gold annihilation scenario. They have already been crushed 90% so maybe that’s the telling clue.
Do either have to go up or down in such dramatic fashion? There is always the third option? 87 – 97?
Thanks Schism
sure, a drifting range is an option too. I kind of draw those arrowed lines more for directional purposes than an indication of time and velocity.
Thanks Schism. One thing that coubts against this is the Silver/Gold ratio and Dow/Gold ratio – both are already at levels that usually indicate a bottom for the PM complex.
I agree with you on the metals ratios but to me some of the gold/spx/indu ratios are kind of neutral long term. But I still think it should at least bounce into 2020 if indeed it is only meant to be a bounce. I have scenarios where commodities don’t bottom until 2026.
Here is long term gold/spx.
https://twitter.com/jatkinson33/status/992029341491089408
Thanks Schism!
I learned a long time ago (over 30 years ago actually now – Wow!) to always watch for relative strength – especially in down markets and double especially around potential major trend changes.
Watching the miners performance of late – coming after such a long and arduous drop – they are refusing to go down in the face of a strong dollar and weaker Gold and Silver prices – this has my radar on high alert – if the turn is coming soon that’s good – if it is coming a little later – maybe Gold can drop and miners can “stand still” for a little longer – would push the beach ball deeper underwater for sure!
Thanks Patty, sage advice. My original thesis was 1430-80 gold by June. Many of my thoughts are tied to whether June is a high or low. I feel better about the long long term prospects of gold if it tanks Into dec/Jan 2019 but that is a pattern that is several years old now…maybe time for a high into that period. I still have miners from 2015 so I’m fine to wrong.