This would be an appropriate time for gold’s ratios to stocks and commodities to hold and turn back up.
With SPX in the preferred target zone of 4219 to 4300 the potential secondary target of 4800 is not what gold bugs would want to see come about. Even if gold does not go bullish in the near-term, weakness in stocks could hold this ratio intact to its uptrend. Here is GLD/SPY thus far holding a higher low to February after making a higher high to January. Bugs want to see that nice uptrend remain intact.
Gold/Commodities (GLD/DBC) is at the intermediate uptrend marker (SMA 50).
Gold vs. a significant gold miner cost input, crude oil (GLD/USO), is in a similar stance.
Gold vs. premier industrial (cyclical) metal copper (GLD/CPER) broke bullish back in March and is at a handy spot to find support.
Just a simple snapshot of some pictures that those investing in gold stocks for fundamental reasons would want to see remain intact.
