Two Disturbing Gold Charts (GLD, IAU, GDX, GDXJ, GG, ABX, KGC, AUY)

Przemyslaw Radomski: So, gold didn’t move below $1,500 and it rallied recently – the worst is behind us, right? It might be, but there are reasons to think otherwise and in today’s essay we will feature two charts (courtesy by http://stockcharts.com) that should make you think twice before investing your whole capital in the gold market.

The first one features the Dow:Gold ratio.

The ratio appears to have broken above the declining resistance line. This is a bearish sign for gold relative to stocks, as it indicates that stocks will outperform the yellow metal. Please note that gold topped when this ratio bottomed and as the latter rallied, the former declined. (more)