With everyone focused on the upcoming Fed decision on interest rates, today King World News thought it was a good idea to take a step back and look at the big picture. This led to a fascinating question: Is the gold market about to see a jaw-dropping 70 year breakout?
King World News note: The long term Gold/Oil Ratio has broken out once again to the upside and is now very close to resistance at the 30 level. A breach of the 30 level will send the ratio to the final resistance at 33 (see chart below).
Eventually the 33 level will be taken out on the upside, it’s just a question of, when? If you take a careful look at the chart you will notice that the Gold/Oil Ratio fell to all-time lows during the 2005 – 2008 time frame. Thus, the ratio is now simply going to extremes in the other direction, which means the 33 level will be breached on the upside at some point. Gold is definitely showing strength, particularly in the face of a commodity sector that has been decimated, as it nears a jaw-dropping 70 year breakout.
***To hear Dr. Stephen Leeb’s powerful audio interview CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Fleckenstein Warns Crash-Prone Stock Market Now Hanging By A Thread But Gold Is A Different Story CLICK HERE.
***To listen to billionaire Eric Sprott discuss this week’s panicked trading and what’s directly ahead, you can listen to his extraordinary KWN audio interview by CLICKING HERE OR ON THE IMAGE BELOW.
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