Is Gold A-Glitter Again?
After consolidating for much of the year, Gold has recently broken out of a trading range to the upside, back to levels not seen since the summer of 2016.
Analyst Chris Kimble at Kimble Charting took it a step further and looked at the Gold to Dollar ratio in the chart below.
The Gold/Dollar ratio has recently broken above both its resistance level, and a multi-year downward trend line. In the past, Gold/Dollar strength has been positive for precious metals and miners, Kimble notes.
So, that’s one person’s opinion.
And to be perfectly honest, when I looked at the current state of gold and miners, as mentioned above, the trend seems pretty positive.
Am I going to go out and buy gold or miners for our clients? NO. In my opinion, there are several more interesting sectors in the investment universe with more potential than this one.
Obviously, not any kind of investment recommendation, but it’s simply food for thought.