Holding up well and consolidating above support here. Something to keep an eye on in the coming weeks. pic.twitter.com/wZPLZiGyTw
— Ian McMillan, CMT (@the_chart_life) September 11, 2020
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). It’s a ratio chart of Gold vs. the S&P 500 over the past thirteen years. There hasn’t been much to say about Gold in recent weeks. The yellow metal broke out to all-time highs in July and quickly climbed above $2,000 per ounce. Since then, Gold has been coiling into a tight range as it digests its early-summer gains. On a relative basis, Ian points out that Gold has been consolidating above support after breaking out of a multi-year base. If this consolidation resolves higher, it will mean Gold is reasserting its leadership over Stocks. Stocks often get all the attention, but let’s not forget that Gold has outperformed the S&P 500 by more than 2x over the past 12-months. After a month of consolidating its summer gains, could Gold be ready to step back into the spotlight?