The precious metals continue to rally with silver outpacing gold. The RSI(14) of the Silver/Gold ratio is at 71.50. The five mid-March bottoms in gold we are monitoring for comparison put in RSI’s of 62, 85, 80, 64 and 82 in the first week of the breakout in gold. Unless support is violated we should be looking for a price high in gold and silver in the latter half of May through early June. Our exhaustion index is anticipated to produce daily and/or weekly sell alerts leading into the highs.
The mining stocks as represented by the XAU (used only because of its available history) performed well right through the in the seven week window, unlike the S&P which trended lower in four of the five instances.
(Click on images to enlarge)
in this report are solely those of the author. The information
herein was obtained from various sources; however we do not guarantee
its accuracy or completeness. This research report is prepared
for general circulation and is circulated for general information
only. It does not have regard to the specific investment objectives,
financial situation and the particular needs of any specific person
who may receive this report. Investors should seek financial advice
regarding the appropriateness of investing in any securities or
investment strategies discussed or recommended in this report
and should understand that statements regarding future prospects
may not be realized.