This is an interesting ratio study of Gold/SPX . SPX is the US equity Index.
The ratio moving up means it favours Gold over Equity. The ratio broke above the MA for the first time after 20 years in Dec 02 and hence was a significant breakout. It broke the trend line in Mar 2012 and was asking u to exit gold and buy Equity.
Now in this 10 years Gold gave an absolute return of 400% VS 60% by SPX. From Mar 2012 till date Gold gave an absolute return of 23% Vs 270 % by SPX.
The ratio has not crossed above the MA which means it still favours being in Equity over Gold.
The ratio moving up means it favours Gold over Equity. The ratio broke above the MA for the first time after 20 years in Dec 02 and hence was a significant breakout. It broke the trend line in Mar 2012 and was asking u to exit gold and buy Equity.
Now in this 10 years Gold gave an absolute return of 400% VS 60% by SPX. From Mar 2012 till date Gold gave an absolute return of 23% Vs 270 % by SPX.
The ratio has not crossed above the MA which means it still favours being in Equity over Gold.