Something Big Is Brewing In The Gold Markets?

Gold is preparing for a major move in the next two to three weeks.

The precious metal is in a large multi-month triangle formation. The coming move will be violent when it hits.

GPC1022201.png

As I’ve noted previously, during inflation-driven bull markets in gold, gold miners typically outperform the precious metal. For this reason I like to track the gold miners to gold ratio (GDX:GOLD).

When gold miners outperform gold, this ratio rises. When gold miners underperform gold this ratio falls.

As you can see, the GDX: Gold ratio is in a clear bull flag formation. This is extremely bullish and signals that we are about to see an explosive move in which gold miners driver higher, outperforming even gold. We just need a final breakout to the upside.

GPC1022202.png

Another key feature of bull markets in precious metals is that silver outperforms gold. With that in mind, I also like to track the silver to gold ratio (SILVER:GOLD). 

When silver outperforms gold, this ratio rises. When silver underperforms gold this ratio falls. Right now, it’s in a large triangle formation as well. Given that it formed this triangle from below, this too suggests the move will be upwards, but again, it’s a little early here.

GPC1022203.png

Again, this sector is showing us that a massive move is coming. With the right investments, it could mean windfall profits for investors.

For more market insights and investment ideas, swing by our FREE daily e-letter at www.gainspainscapital.com.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.