Since gold recently soared to crazy-overbought extremes, the odds for a doldrums selloff this year are much higher. This mighty gold bull needs a healthy rebalancing selloff before resuming again.
It's still unclear whether the ratio has become oversold enough by the monthly RSI. But the risk/reward situation favors silver over gold, regardless whether the ratio has bottomed yet.
When we look at the gold market, it's really gone nowhere for about a week and a half, two weeks. The pattern on the chart is still one of higher lows and a higher high.
I see a sideways market. When I put the swing line on, you can see you've got a pattern of higher lows and higher highs. That's the definition of an uptrend.
The short-term dip in rates indicated by our wave counts is likely related to a stock market tumble. The projected tumble and the following inflationary rise in rates are good for gold!
