Is a new bull market in metals about to “Get Started?” Lets look at one indicator that is attempting to send a bullish signal, for the first time in 6-years.
Below looks at the Gold Futures/US Dollar ratio, since 1999 on a weekly basis-
CLICK ON CHART TO ENLARGE
The Gold/King Dollar ratio broke above resistance in 2001 and a strong breakout took place. For a decade, Gold was much stronger than the US$ at (1). Gold, Silver and miners did very well in this time frame. Once the ratio broke rising support in 2011, the ratio turned lower. This is where the bear market in Gold, Silver and miners started.
Currently the ratio is attempting to do something it hasn’t in the past 6-years, which is a breakout at (2). A break above resistance is the first for the ratio since the highs back in 2011. If the ratio can keep moving higher and clear the highs of last summer, it would send the first longer-term bullish message to the metals space in years.
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