From the Desk of Ian Culley @IanCulley
Have you checked out our new Gold Report?
We run through nearly 4o charts, breaking down the key levels and intermarket relationships, suggesting Gold could hit 5,000.
In this update, I’m going to share two of my favorite charts.
Plus, I’ll reveal one mining stock setting up for a buy signal.
First, Gold outside the US presents a very different picture.
Yes, the USD dominates global trade. And yes, we want to witness a break to fresh all-time highs priced in US dollars. But when we look around the world at other major currencies, Gold has already broken out!
This is what Gold looks like when we remove the US dollar bias:
It’s the same story no matter where we look – from the lower left to the upper right. Uptrends, folks…
Gold priced in every major global currency trades above its prior cycle highs from 2011 – except the US dollar, of course.
The recent rally in this key risk ratio caught our attention due to its bullish implications. Notice the ratio completed a near-term bottom before Gold violated its year-to-date downtrend line. Now both, are trending higher.
So far, the bulls are in control as the silver/gold ratio challenges fresh 52-week highs. This is a clear sign of risk appetite and the type of behavior common during uptrends.
Silver outperforming gold adds to our conviction. It’s just a matter of when, not if, Gold resolves higher priced in USD. The real question is how we plan to profit when it does.
Thankfully, you don’t have to wait for Gold to hit new all-time highs. In fact, we’re already finding plenty of opportunities out there…
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