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Gold (GLD) and Gold Stocks (GDX) continue to deal with key overhead resistance at (1) in the chart above. The price action in Silver remains a positive, yet for some reason, should this resistance in Gold hold here, it could spill over into Silver and Copper! Gold is totally capable of breaking resistance, if it does, the relative out performance in Silver should continue! We are overweighted towards SLV/SIL right now, yet watching Gold very closely due to key resistance.
Chris,
Thanks for the reply. It’s always appreciated to bounce questions off of you.
Best,
Bill
Sorry I was just being lazy. It has been a long time since I looked at the ratio. Seems silver had a way to run yet to get back to its normal relationship to gold. As…there is an article at seekingalpha.com revealing that the historical relationship is 16x and it is now at 40x….
Ty… I am aware of the ratio. When you look at it, what do you feel it is suggesting?
Ty…could a breakout in Gold take place? Yes. As I have shared several times, I am not against gold. I do work hard to find to find the best plays and look for the place to put your hard earned monies. Silver looked to be the favored choice and so far in the past few weeks it has doubled golds performance. A breakout above resistance in gold would for sure be good. If it breaks out, will it outperform Silver, I doubt it for a while.
I guess my point is…if Gold follows silver and the charts look similar it may suggest a massive breakout in Gold.
Hi Chris!
Love your blog here. I am wondering if you ever look at the silver:gold ratio. I have seen analysis before which looks at the historical relationship between the two to predict moves.
Ty
William…Oil is right continues to probe and test the Fib 61% retracement level. Charts would suggest that if it can take out Fib, top of the rising channel comes into play around $130….Ouch!
Chris,
What are your thoughts on oil?