Gold /Silver ratio: A temporary crystal ball?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Resistance at $1,980-85 is manifesting as expected, at least for the short term. A clean breach of $1,985 on a closing basis would open the door to $2,010.
A failure to push past $1,980-85 would likely see sellers step in, and a sideways grind commence before the next leg up begins in earnest. Silver is facing resistance at $25.90, but in this trader’s opinion, the precious metal should be given the bullish benefit of the doubt as long as $24.90 - $25 can hold up.
The gold to silver ratio continued to fall overnight, as suggested, but has found support at the trendline displayed on the chart below (daily timeframe). Precious metals bulls may consider using the ratio as a guide for when the next move will begin; of course, bulls would like the triangle to break to the downside for a move toward 69.5.
With a shortened holiday week, today’s close in major US indices may be a gauge for risk appetite and provide a vital clue as to whether stocks have finally put in a higher low from the bottom and are preparing for the next leg up.