Gold Mining Margin MACRO

Gold Mining Margin Macro Indicator — Description

This indicator measures the structural profitability of gold mining by comparing the gold price with estimated production costs. It is designed as a macro-context tool, not a short-term trading signal.

The script tracks three core components:

Gold − AISC (All-In Sustaining Cost) → proxy for mining profitability

Energy-adjusted mining margin → incorporates oil as a major production cost input

Gold / Oil ratio → intermarket relationship between gold and energy costs

Together, these metrics help visualize the economic pressure or expansion phase of the gold mining sector.

What the indicator measures

The indicator estimates whether gold is trading:

near production-cost pressure levels

in a neutral profitability zone

in a strong mining-profit environment

or in a boom phase

A weekly regime classification is used to reduce noise and focus on macro-cycle conditions rather than short-term price fluctuations.

Primary use case

This indicator is intended to help identify:

potential gold price floor zones

mining-sector stress conditions

cyclical turning points in gold

confirmation context for cycle-based analysis

It works best when combined with:

cycle analysis

intermarket analysis

positioning data

macroeconomic context

Important note

The AISC value is user-defined and represents an approximate global industry cost level, not the cost of a specific mining company.
The indicator is meant to reflect sector-level economics, not individual equities.