From Chris Kimble: Below looks at the ratio of Gold compared to the US Dollar over the past 20-years. The ratio reflects that some long-term trends have taken place and the ratio is making an attempt to do something it hasn’t been able to accomplish in 6 years.
The ratio broke above 6-year falling channel back in 2001 at (1) and then it proceeded to rally for the next 10 years.
For the past 6 years, the ratio has continued to create a series of lower highs and lower lows inside of falling channel (2).
Currently the ratio is attempting to do something that it has not done in 6-years, which is a breakout above falling channel (2) at (3).
The SPDR Gold Trust ETF (NYSE:GLD) was trading at $119.97 per share on Thursday morning, up $0.09 (+0.08%). Year-to-date, GLD has gained 9.45%, versus a 11.83% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.