Wednesday, March 11, 2009

GDX-GLD Ratio

on this chart of GDX relative to GLD I have included some simple price targets that one should look for in the event that the ratio closes below the ascending trendlines.

while a conclusive break of Gold's uptrend hasn't yet arrived, Gold Mining Stocks appear rather weak at the moment. as you can see from this ratio, the miners seem to be leading the metal lower.

I've been wrong about Gold Stocks before, so don't forget to add a grain or two of salt. but then again, I've been right about this market a time or two in the past as well. in any case, I don't have a strong interest in mining stocks, except as they relate to the bullion markets.