This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.
Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?
Chart courtesy of TradingView.com
As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.
This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe"