Is 11-Year Cycle Signaling Gold and Silver Miners Rally?

The price of gold is trading just off its all-time highs while the price of silver is lagging. Together, they haven’t quite provided mining equities the boost they need to out-perform the broad market.

But an 11-year cycle may be saying that gold and silver mining stocks are ready to rise again.

Today, we take a look at the performance of the miners versus the S&P 500 Index by charting its performance ratio since 1990. The ratio is comprised of the $XAU Precious Metals Index / $SPX S&P 500 Index.

As you can see, since 1990 the ratio appears to be working on 11 year trends/cycles.

The latest cycle of underperformance has come to an end and the ratio is trying to hold near-term support.

Time for $XAU and gold and silver mining stocks to start outperforming again? Stay tuned!

$XAU/$SPX Ratio Chart (Gold and Silver Miners / S&P 500 Index)

Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to [email protected] for details to get set up.

Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

The post Is 11-Year Cycle Signaling Gold and Silver Miners Rally? appeared first on See It Market.

gold
silver