Sunday, March 23, 2008

Gold mining stocks index (XAU) analysis

Since the mid august 2007 bottom the gold mining indexes appreciated along the price of gold . Generally uptrend was divided into two phases :

From mid August to mid October the XAU (the heavy options volume index) outperformed gold – probably due to positive trend (at that time) for the general equity markets.


From mid October 2007 till mid March 2008 the XAUunder performed the price of gold. - probably due to bearish trend for the general equity markets.

Note that currently the XAU/GOLD ratio is lower(on an end of the day basis) then it was at the August 2006 bottom !



xau gold ratio chart



Cyclically Important technical points:

the low of 167.

the low of 157.



xau index chart



Note:

Since the late 2000 bottom this index (along other mining indexes) is up several 100's percents.



xau long term chart

1 Comments:

Blogger Jeffery Cloyd said...

If only we could have predicted back in 2008 what mining stocks stocks would do in the past two years. It is always interesting to look back and review the speculation that we made in the past.

Friday, May 13, 2011 12:53:00 PM  

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