Sunday, July 8, 2018

Are We In A Bear Or Bull Market In Precious Metals?

The gold market looks like being in a typical short-term bear cycle:

The green line indicates that since middle April 2018 the gold has been in a downward trend.

However, this chart says something different:

The chart shows a popular gold market performance measure, the gold / silver ratio. To remind you, during the furious bull markets in precious metals the ratio is going up. And vice versa  - during a bear market it goes down. The message delivered by the above picture is quite simple - the precious metals market is in a bull cycle.

And the last chart:

This time the chart shows another popular performance measure, the GDX / gold ratio. Once again, during a typical bull market in precious metals GDX (or gold mining companies) outperform the gold itself. The blue up-trending line evidences that the precious metals market is in its bull cycle.

So the question is: "Are we in a bear or bull market in precious metals?"


  1. Tenendo conto della svendita in atto su GLD da piu di due mesi direi che $XAU si sta comportando come se fossimo in un mercato toro.