The collapse in NY gold from $1501 on Friday to $1352 tonight adds a nearly 10% decline on top of Friday's 4% decline.
Oil closed down too, today, just below 89, yielding a nearly perfect gold/oil ratio of 15.2.
Based on the decline in the ratio down to this point, the buy signal for oil the higher ratio indicated comes off. But that doesn't mean we've got a buy signal for gold. Yet.
At 82.29, the US Dollar Currency Index is not indicating any real new strength on these developments.
Caution is indicated as gold may well continue down, and oil may follow it.
