Two months ago I pointed out in a Seeking Alpha article that the Dow-Gold Ratio had reached a level of strong resistance.
The Dow-gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average divided by the price of gold.
At Thursday's close of 8.51, the Dow Jones Industrial Average, measured in how many ounces of gold it takes to buy the 30-stock Dow, is up 21.1% from its 17-year March 6, 2009 low of 7.03. But, as the chart below shows, the ratio has been in a fairly flat, two-year trading range as it moved from long-term support to resistance.
The Dow-gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average divided by the price of gold.
At Thursday's close of 8.51, the Dow Jones Industrial Average, measured in how many ounces of gold it takes to buy the 30-stock Dow, is up 21.1% from its 17-year March 6, 2009 low of 7.03. But, as the chart below shows, the ratio has been in a fairly flat, two-year trading range as it moved from long-term support to resistance.
click image for article with 3 graphs
Despite good gains for the Dow since March 2009, the Dow-gold ratio remains just above its March low and 81% below its 1999 peak of 44.77.Read the rest of my article at Dow-Gold Ratio Following Strong Resistance Lower, Will It Continue?
More of my related Articles:
- Apr 8 Dow-Gold Ratio Following Strong Resistance Lower, Will It Continue?
- Feb 7 Dow-Gold Ratio Now at Strong Resistance, Will It Break Higher or Lower?
- Mar 31 As Gold/Silver Price Ratio Continues Plunge, What to Purchase
- Mar 14 Gold / Silver Price Ratio at 27-Year Low
- Mar 04 Global Inflation Pressure Rising: How to Profit
Note the US Dollar (USD on my 3rd chart) did very well when the stock market rallied between 1996 and 2000. Gold went the other direction.
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