CLICK ON CHART TO ENLARGE
When it comes to a relative weakness story, Gold stocks compared to Gold pretty much is the winner, relative weakness winner that is! The Gold/Gold Stock ratio is setting at 30-year lows in the left chart above!
The Gold/Silver ratio (XAU) has formed a falling wedge over the past year and is testing a small support line. Gold stocks need to “Bounce” here or the 30-year relative weakness story continues!
point is you play it o or not, because then it will come another support, and another one…. since it broke 48, im short, you know that…and if you trade it, maybe you close your position some times, but its still pointing south…( except if it can come above 48…and for now, we are quiet far from there).
Belsha…Gold stocks have sucked it up big time, compared to gold. The XAU index needs to hold or they are in huge trouble.
The falling channels and descending triangles in Gold and Silver, don’t look to positive for them.
Metal shares are due a bounce, yet it doesn’t mean they will!!! 🙂
I don’t quite understand how you can be at once bullish on gold stocks and ultra-bearish on silver and thus gold too…
Agree that if this support doesn’t hold, it look out way below current levels.
still see the gdx falling, during next weeks/months.
Josh…Thanks for you comment and suggestion. I will do the ratio in upcoming days.
Gold stocks/XAU index needs to hold here or they are in for much lower prices! They need more than a bounce, they need a kick in the ass-et!
Could you show the gold to oil ratio, I would think that would be the most important thing to gold stocks. Gold is the output, oil the input.
Thanks. Love your site!