Gold/Oil Ratio On the Verge

Founder & Editor @ NFTRH.com
May 3, 2024

The Gold/Oil ratio would resume a positive fundamental tailwind for the gold mining sector if it breaks out.

As crude oil/energy is a large part of gold mining cost structures, the Gold/Oil ratio is pretty important fundamentally, wouldn’t you say?

Though not shown on this daily chart, the dashed resistance line is actually long-term and important resistance, if you believe a ratio can have support/resistance. I do, because it is the product of two nominal markets. There’s just a little more cross talk in the signals.

Macro fundamentally, if the Gold/Oil ratio does break out and head higher we’ll have another counter-cyclical signal in play as well.

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Gary Tanashian is founder and editor of the popular Notes from the Rabbit Hole (NFTRH). Gary successfully owned and operated a progressive medical component manufacturing company for 21 years, keeping the company’s fundamentals in alignment with global economic realities through various economic cycles. The natural progression from this experience is an understanding of and appreciation for global macro-economics as it relates to individual markets and sectors.


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