The past 6-years have not been fun for buy & hold investors in the Gold, Silver and Miners space! Could that trend be about to change? The Power of the Pattern would say, a price point is in play, where a trend reversal could start to take place.
Below looks at the US Dollar/Gold ratio over the past 30-years-
CLICK ON CHART TO ENLARGE
From 2001 to 2011, the ratio fell, reflecting that Gold stronger than the US$. From 2011 the ratio has risen sharply, reflecting that the US$ has been much stronger than Gold at (1).
The ratio remains in a long-term down trend and a 6-year rising trend. A potential “resistance cluster” is in play at (2) above.
If the resistance would hold at (2) and the ratio would turn lower, Gold, Silver and Miners would benefit. The Power of the Pattern would share that this is one of the most important potential inflection points for Gold/US$ in years and years.
Full Disclosure- Premium and Metals Members have been long Junior Miners (GDXJ) for the past couple of weeks. We shared a week ago that mining stocks could be poised to out perform that S&P 500 for years to come.