{"id":12129,"date":"2015-08-06T01:01:41","date_gmt":"2015-08-06T05:01:41","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=12129"},"modified":"2015-08-06T01:01:41","modified_gmt":"2015-08-06T05:01:41","slug":"gold-oil-ratio-warns-of-further-selling","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/06\/gold-oil-ratio-warns-of-further-selling\/","title":{"rendered":"Gold-Oil ratio warns of further selling"},"content":{"rendered":"<p>The Gold-Oil ratio, comparing the price of bullion ($\/ounce) to Brent crude ($\/barrel), has long been used as an indication of whether gold is in a bull or bear market. When the oil price is high, demand for gold, anticipating rising inflation, is normally strong. The current plunge in oil prices indicates the opposite: weak inflation and low demand for gold. Bullion prices are falling but not fast enough to keep pace with crude, driving the Gold-Oil ratio to an <em>overbought<\/em> position above 20. Expect a long-term bear market for gold.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"297\" alt=\"Gold-Oil ratio\" title=\"Gold-Oil ratio\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-06-gold-oil.png?resize=525%2C297&#038;ssl=1\" \/><\/p>\n<p>Spot Gold is consolidating in a narrow rectangle below $1100\/ounce. This is a bearish sign, with buyers unable to break the first level of resistance. Breach of support at $1080 is likely and would signal a decline to $1000\/ounce*. Declining 13-week Twiggs Momentum below zero confirms a strong primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" alt=\"Spot Gold\" title=\"Spot Gold\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-06-gold.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 1200 &#8211; ( 1400 &#8211; 1200 ) = 1000<\/p>\n<p>The Gold Bugs Index, representing un-hedged gold stocks, has fallen close to 30 percent since breaking support five weeks ago.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" alt=\"Gold Bugs Index\" title=\"Gold Bugs Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-06-hui.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Barrick Gold, one of the largest global gold producers, is falling even faster.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" alt=\"Barrick Gold\" title=\"Barrick Gold\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-06-abx.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>If long-term crude prices continue to fall, like the June 2017 (CLM2017) futures depicted below, gold is likely to follow and support at $1000\/ounce will not hold.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"445\" alt=\"WTI Light Crude June 2017 Futures\" title=\"WTI Light Crude June 2017 Futures\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-06-crude.png?resize=525%2C445&#038;ssl=1\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Gold-Oil ratio, comparing the price of bullion ($\/ounce) to Brent crude ($\/barrel), has long been used as an indication of whether gold is in a bull or bear market. When the oil price is high, demand for gold, anticipating rising inflation, is normally strong. The current plunge in oil prices indicates the opposite: weak &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/06\/gold-oil-ratio-warns-of-further-selling\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Gold-Oil ratio warns of further selling&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,9,35],"tags":[387,711,1580,3204,3714],"class_list":["post-12129","post","type-post","status-publish","format-standard","hentry","category-fixed-income","category-gold-precious-metals","category-us-dollar-index","tag-barrick-gold","tag-clm-2017","tag-gold-bugs-index","tag-spot-gold","tag-wti-light-crude"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gold-Oil ratio warns of further selling - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold-Oil ratio warns of further selling - the patient investor\" \/>\n<meta property=\"og:description\" content=\"The Gold-Oil ratio, comparing the price of bullion ($\/ounce) to Brent crude ($\/barrel), has long been used as an indication of whether gold is in a bull or bear market. 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When the oil price is high, demand for gold, anticipating rising inflation, is normally strong. 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","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-39D","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":15483,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/06\/23\/gold-oil-ratio-warns-of-further-easing\/","url_meta":{"origin":12129,"position":0},"title":"Gold-Oil ratio warns of further easing","author":"ColinTwiggs","date":"June 23, 2017","format":false,"excerpt":"I don't attach much significance to the Gold-Oil ratio on its own but it's back in overbought territory, above 25. The chart below -- plotting inflation-adjusted prices (over CPI) -- far better depicts the relationship between gold and crude oil. Each major spike in crude prices over the last 50\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12326,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/09\/gold-the-next-leg-down\/","url_meta":{"origin":12129,"position":1},"title":"Gold: The next leg down","author":"ColinTwiggs","date":"September 9, 2015","format":false,"excerpt":"Spot Gold respected resistance at $1180\/ounce and is headed for another test of support at $1080. Declining 13-week Twiggs Momentum with peaks below zero confirms a strong primary down-trend. Breach of support at $1080 would offer a target of $1000\/ounce*. * Target calculation: 1200 - ( 1400 - 1200 )\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"Spot Gold","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-10-gold.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-10-gold.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-10-gold.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":15596,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/07\/14\/gold-theres-life-in-the-old-girl-yet\/","url_meta":{"origin":12129,"position":2},"title":"Gold: There&#8217;s life in the old girl yet","author":"ColinTwiggs","date":"July 14, 2017","format":false,"excerpt":"The Dollar Index is in a primary down-trend. Breach of support at 95.50 signals another decline. The long-term target is the 2016 low between 92 and 93. A weakening Dollar and geo-political uncertainty should fuel demand for gold, but gold and silver have both been testing support in recent weeks\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28200,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/10\/07\/crude-as-cheap-as-chips\/","url_meta":{"origin":12129,"position":3},"title":"Crude as cheap as chips","author":"Colin Twiggs","date":"October 7, 2021","format":false,"excerpt":"There has been plenty of hand-wringing lately as the price of crude climbs to close to $80 US Dollars. But use a different measuring stick and crude oil prices are still \"as cheap as chips.\" The price of crude, when measured in barrels per ounce of Gold, looks a bargain\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32100,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/04\/19\/gold-versus-the-dollar-2\/","url_meta":{"origin":12129,"position":4},"title":"Gold versus the Dollar","author":"Colin Twiggs","date":"April 19, 2022","format":false,"excerpt":"The Dollar Index broke through 100, continuing its strong up-trend. But this is simply a case of the best horse in the glue factory. A rising Dollar Index reflects weakness in the Euro, with soaring energy costs threatening a European recession and Trend Index peaks below zero warning of strong\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Dollar Index","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-04-19-dxy.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-04-19-dxy.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-04-19-dxy.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-04-19-dxy.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":17753,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/01\/18\/gold-bull-or-bear\/","url_meta":{"origin":12129,"position":5},"title":"Gold: Bull or bear?","author":"Colin Twiggs","date":"January 18, 2019","format":false,"excerpt":"Gold is testing resistance at $1300\/ounce and is likely to follow-through to the long-term\u00a0(LT) ceiling at $1350. Trend Index\u00a0 on the LT\u00a0 monthly chart displays a large triangular consolidation, indicating uncertainty. Upward breakout would signal a primary up-trend but this is unlikely, for three reasons. First, this is a bear\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/12129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=12129"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/12129\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=12129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=12129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=12129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}