Gold/Oil and Gold/SPX are important for a positive view of gold mining. Gold/Oil is a direct sector fundamental measure of the gold mining product vs. a primary mining cost driver. Gold/SPX is a ‘macro’ fundamental that would indicate a shift in wider investor sentiment to gold and by extension, the gold mining sector. Using associated ETFs…
Gold/Oil (GLD/USO) has been bouncing and has now taken out the SMA 200, which is the first step to changing the downtrend. If it takes out the September high it could get cooking, along with a disinflationary backdrop.
Gold/SPX (GLD/SPY) has also recovered after a breakdown and the same applies here, a take out of the October high would restore the uptrend that may have begun in August.
