Valuable Insights from Around the Web – Tue 11 Jul, 2017

Gold/USD Ratio – At a Key Level

Continuing our comments on gold and this time looking at the gold/USD ratio. The chart presented below from our friend Chris Kimble over at Kimble Charting Solutions outlines gold’s inability over the past six years to break the downtrend.

When talking about gold and the USD most people point to the inverse correlation that is sometimes present and sometimes not. That’s why I like this chart because it gives a more direct picture of the relationship. As Chris points out this ratio has failed to breakout a couple times during this six year period and now we are right back at the downtrend line. I think we are all hoping for a breakout!

Click here to visit Chris’s website for more great straightforward technical commentary.

Gold bulls want to see King Dollar weakness here!

Gold for nearly a decade (2000-2011) was much stronger than the US Dollar, reflected at (1) below. Once this ratio peaked in 2011, it has created a series of lower highs along falling resistance (2) in the chart below.

CLICK ON CHART TO ENLARGE

A counter trend rally has taken place since last year, taking the ratio up to the underside of falling resistance line (2) at (3).

For Gold to break free of this 6-year falling trend it needs to breakout at (3). Gold bulls do NOT want to see this ratio peak at (3) and start turning lower!

Gold has run out of steam for the past few years along line (2), will see if its different this time around at (3).

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Comments:
  1. On July 11, 2017 at 10:14 am,
    CFS says:
  2. On July 11, 2017 at 10:59 am,
    Matthew says:
  3. On July 11, 2017 at 11:05 am,
    spanky says:

    Gold rally is over. Stock market about to launch.

  4. On July 11, 2017 at 11:20 am,
    Matthew says:
  5. On July 11, 2017 at 11:55 am,
    Matthew says:

    This looks like a good time for the silver-gold ratio to turn up (gold-silver ratio to turn down):

    http://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=W&yr=3&mn=0&dy=0&id=p05551105232&a=533707604

  6. On July 11, 2017 at 12:07 pm,
    Matthew says:

    The HUI has provided more than 8.5 to 1 leverage to gold this week, so far….

    http://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=1&mn=8&dy=1&id=p61564224636&a=533284650

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