Even as silver continues to lead gold, check out gold (GLD) vs. SPX (SPY). The pattern is an inverted H&S, which would be a bullish reversal if it continues to follow through.
Not a fan of patterns (they fail all the time), especially on ratios? Well, the relative price has broken to a new recovery high after the August breakdown low. What’s more, it has taken out the daily SMA 50 & 200 and also turned RSI green. Those things do mean something. The pattern is just a bonus.
The very bedrock of our best view, which is anti-inflationary and counter-cyclical on the intermediate-term, is for gold to outperform cyclical markets. There ain’t no more important cyclical market than the S&P 500.