No one indicator should be considered in a vacuum, especially one that is the ratio of a substance that has unique supply/demand fundamentals (Palladium) vs. one that is stable (Gold).  But here it is anyway, the Pall-Gold ratio as we have used for a long while in NFTRH.  Why?  Because for whatever reasons, it has been in line with economic cycles.

Here’s the weekly chart we usually use, showing a volatile series of spikes and drops.  The indication is still economic trend up, but as noted in NFTRH 336 “If this volatility keeps up it is going to turn the moving averages down and put a red arrow there.”

We also noted that nominal PALL is on the verge of entering a bear market, to join its big bro, Platinum.

Here is what Palladium is doing vs. Gold (roughly) today (PALL-GLD)…

Okay so remember, it is just an indicator made up of two discrete items.  But it is also and indicator that tends to be in line with economic up and economic down cycles.