Metal prices can vary widely in the spot market. The gold price, silver price, platinum price or palladium price are shown below. 1 troy ounce = 31.1034768 grams. The 200DMA is the 200 day moving average. The Relative number is the current price divided by the 200DMA. As I discussed in 200 Day Moving Average – The Pull Of Gravity, this shows whether the metals are cheap, average value, expensive or really expensive. The goal is to buy low and sell high.

I have found that during this secular bull market, gold in relation to FRN$ is valued by the market as cheap when its relative price is around .99, average value between 1.00 and 1.25, expensive between 1.25 and 1.35 and very expensive above 1.35. This can be accomplished by looking at the relative price and using standard deviations to form trading ranges.