Christopher Aaron – Medium-Term Technical Outlook On Gold, DOW to Gold Ratio, Silver, And PM Stocks

The KE Report

Christopher Aaron, Founder of iGold Advisor and Senior Editor at the Gold Eagle website, joins us to review his medium-term technical outlook on gold, the Dow:Gold ratio, silver, and the precious metals stocks. He is constructive based on the progress on the charts, but has some concerns over the next few months, as he sees a growing potential for a correction in the US equity markets that could take most sectors down. We review what he is watching as the Dow:Gold ratio continues to flatten out. In the near-term, he is expecting a little more upside in the PMs, followed by corrective move to let things cool down, before the next big impulse leg higher.

Christopher points out that on a historical basis, every time gold has broken out to new highs, it has back-tested the breakout pricing level, before moving even higher once again. Mining stocks tend to outperform in the later moves in precious metals bull markets, after the back-test of the breakout levels has occurred. We also look at the pricing action in silver, and GDX in relation to gold and in contrast to other prior bullish runs.

Click here to visit the iGold Advisor website to keep up with Christopher’s market commentary.