The ratio of Gold to the XAU index indicates that gold stocks remain significantly undervalued. Ratings of 5 or above are ideal entry points for gold stocks and ratings @ 4 or below indicate that gold stocks are extended in price and are vunerable to a significant corretion.
<img src="http://i186.photobucket.com/albums/x317/thoma4124/RatioofGoldtoXAUGoldIndexIndicatesG.jpg" alt="Photobucket - Video and Image Hosting"><br><br>