Is a new bull market getting started in metals? Lets look at one indicator that is attempting to send a bullish signal for the first time in 6 years.
Below looks at the gold futures—US dollar ratio since 1999 on a weekly basis.
The ratio broke above resistance in 2001 when a strong breakout took place. For a decade, gold was much stronger than the USD at (1). Gold, silver and the miners did very well during that time frame. Once the ratio broke rising support in 2011, the ratio turned lower. And that's when the bear market in gold, silver and the miners started.
Currently, the ratio is trying to do something it hasn’t done in the last 6 years, which is a breakout at (2). A break above resistance is the first for the ratio since the highs back in 2011. If the ratio can keep moving higher and clear last summer's highs, it would send the first longer-term bullish message to the metals space in years.