We have written about the inverse relationship between SP500 and Gold. In times of fear, Equities fall and money flows into Gold. So what are the relative charts of Equities vs Gold suggesting now?
The above chart shows Gold vs SP500. See the periods when MACD was bullish and also the chart was above the 50 period moving average. 2001-2010 was a good period to be invested in Gold. Currently the ratio is below the Moving average and also MACD has a bearish crossover. This suggests currently Equities is a better place to be relative to Gold.