Revisiting Gold Bugs Ratio

As we go into today's much anticipated release of the US January CPI, here is a reminder of the inverse relationshiop between XAUUSD and the GoldBugs ratio (XAUUSD/HUI). The relationship, explained in many of my videos since March 2025 can be useful, when XAUUSD fails to give any clear signal, in which case you're likely to find tehcnical guideposts in the GoldBugs ratio. This clearly shown in the below chart gold broke multiple records between Jan 13 and Jan 28. During that time, XAUUSD had no reference resistance in sight, while GoldBugs ratio continued to break support. More significantly, see how Gold broke the 4400 in December (R), signalled by the breakdown of (S) in the ratio. And just when you were unsure whether XAUUSD would break below 4300 in late December (S1), the ratio held up its resistance (R1). If gold drops to 4700 or approaches 4600, then keep an eye on the all important resistance of 6.2 in the GoldBugs ratio. 

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