US Gold Mining Shares vs Gold Bullion – Opportunity or Bear Trap?

Dow Jones U.S. Gold Mining index versus gold bullion price from 2000.  Continuing relative decline, or indication of gold mining undervaluation?

Upper chart plots ratio of the price of gold mining index to price of bullion.  The 52-week and 26-week moving average of that ratio is plotted over the price ratio.  The beige shaded area is the 13-week trailing price range.  The blue line is the linear regression best fit trend.

The middle chart panel plots the percentage performance of the gold mining index, along with its 52-week average.

The lower chart panel plots the percentage performance of bullion, along with its 52-week average.

 

Comments are closed.