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 Gold/API Ratio | Australian Gold ETF 

gold/api ratio

 

This chart looks at exactly the same concept as with the Gold/XAU ratio but it looks at the the Australian Gold Producers Index (API) instead. The bottom section looks at the ratio itself which falls when the gold sector is performing strongly and rises when the gold sector weakens and the shares underperform the metal. The middle section represents the API index itself with the top section showing an RSI (Relative Strenght Index) of the ratio where 30 indicates the gold shares may be getting overbought relative to the metal and 70 implying the gold equities may be oversold relative to the metal. The trend of the ratio is followed closely for a potential sign that the market is changing.

 
   
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