Relative strength in the shares improved against gold today with a minus 0.13 on the Gold/XAU Index, closing at 9.37. For historical reference, the trading range on the ratio up to the latter part of 2008 was, roughly, from 3 to 4 at the lower end of the band to 5.5 to 6 on the upper part of it. Towards the end of the financial crisis in 2008 when gold was orchestrated lower from $1000 to just above $700 the Index jumped to over 11 for a brief time period. During the months of May and July of this year, again, the 11 level was briefly breached but failed to hold ground. This year on the Index ratio chart the established strong resistence area most certainly qualifies as a double top formation with a base neckline in past weeks breaking under structural support at 9.60.

Will the old support level on the Gold/XAU ratio chart be revisited again thus supported by a substantial increase in the gold share values? One point needs to be mentioned here: the powerful 50 and 200 day average lines are now currently above the Index's last of 9.37, respectively at 9.72 and 9.68, which continues to be positive for the shares The longer the Index remains under these two moving averages the greater the probability, it seems, would be for the gold shares to continue to out-perform gold into the unknown period of time ahead and that equates into much higher stock prices for them, assuming gold remains in its monster bull market.