Status on the Dow-Gold Ratio

Gold has been doing miserably on negative news in Europe. As a result the Dow/Gold ratio has been going up since Europe has been implementing LTRO I and LTRO II late 2011. I believe we will have support now at Dow/Gold ratio of 9 and it could be time to sell the Dow and buy gold (Chart 1).

In this article I go deeper into the "China play" on this gold dip.

Chart 1: Dow Gold Ratio Short Term