|HUI:Gold (daily observations) - click to enlarge|
The ratio is again below its 50 and 200 days moving average. Have we seen the worst and is today's timid rise calling the infernal trend to change?
*** Update: additional data of throughout March 2011: ***
|HUI:Gold ratio (daily observations until April 1, 2011. (click to enlarge)|
The general market losing ground after the Japan earthquake proved too strong a drag to allow miners keeping up with gold. The 50 dma briefly dropped below the 200 dma, surfacing just over a week later. Technically this last could be seen as a "golden cross", with the 50 dma rising above the 200 dma curve sloping up itself. Any belief is good to end this dismal miner weakness at a strong gold price...
Ending at almost 0.40, the HUI:Gold ratio is again close to the center of its 'post 2008' trading range.
*** end of update ***
The situation for SIL, the silver mining ETF, relative to silver isn't any better at all:
|SIL ETF relative to silver, daily observations. We 're far beneath 50 and 200 dma.|
The relative value of SIL is quite a lot lower than during the January retreat or the prior low around Oct 19. Most silver miners are left behind in the spectacular silver rally ! The few happy exceptions cannot counter the trend.
Prior postings on this subject: