Ratios of risk ‘on’ and pro-cyclical assets to gold are important for our macro view. Let’s take a look at some of the hot plays that are consolidating and/or turning suspect in ratio to gold. A continuation of this process to bearish states would be a negative broad market indication as risk sneaks ‘off’.
US stocks vs. gold have made a top of some kind. It could be due for a test of the up trending SMA 200. Not the end of the world for the risk ‘on’ crowd, but not good either.
World vs. Gold also made a top of some kind. As with the US, it remains to be seen whether or not this is a major or minor turn. Technically, all it can be called right now is minor.
Commodities vs. Gold have gone a volatile sideways since February with fading momentum. Neutral as it stands now.
Copper vs. Gold could lead broad commodities downward in relation to gold if today’s breakdown means anything.
Oil/Gold is doing the heavy lifting for commodities.
Materials vs. Gold has broken to suspect below the SMA 50.
Silver vs. Gold is the only one gold bugs would not only not mind seeing stay intact, but also favor. Silver often leads precious metals bull phases. It clings to the 50 day moving average’s trend.