Key Gold Ratios To Other Markets

Views of gold in relation to other markets and brief summaries thereof, with a focus on how it relates to the gold mining sector and the inflationary macro to come.

Gold/Silver Ratio

Gold/Silver is in a potential bounce pattern with RSI and MACD positive divergences. A bounce (if applicable) – which would likely come in unison with a counter-trend bounce in USD could accompany more broad market pressure and possibly a brief whiff of deflation. As we’ve noted in NFTRH for much of 2020, silver has trounced gold and that is a bigger picture inflationary signal in the “metallic credit spread” (H/T Bob Hoye).

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gold silver ratio

HUI/Gold Ratio

Let’s flip it over for a moment and use gold as the caboose. HUI/Gold ratio is intact to its intermediate uptrend, although it got a little heavy on the rising 50-day moving average to end the week. If it holds up, it’s still a bullish indicator. If it fails the SMA 50 we’d be looking at a deeper sector correction, although the major trend would still be intact at the SMA 200.

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hui gold ratio

Gold/SPX Ratio

Currently an excellent macro fundamental indicator for gold stocks, as Gold/SPX held a higher low on a second test of the rising 200 day moving average and looks constructive to reestablish the uptrend.

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gold spx ratio

Gold/DJW

Gold/Global Stock Markets is very similar to Gold/SPX above. Constructive.

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gold djw

Gold/CRB Ratio

A little wobbly to end the week as crude oil bounced. A breakdown in Gold/Commodities, much like Gold/Silver, could have inflationary implications. But the major trend by the 200-day moving average remains up.

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gold crb ratio

Gold/Oil Ratio

This is a highly volatile but up trending inter-market ratio that smooths out as a fundamental positive for gold miners in 2020 (energy being a significant piece of the mining cost pie).

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