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Gold/Silver ratio accurate

Commentaries & Views

For now, the gold/silver ratio indicates that the metals are in for further consolidation before a move over $2,000 in gold can occur.

That said, yesterday’s intraday selling pressure in both gold and silver could give way to at least a temporary bounce. Should gold hold $1,950, a move to the $1,975 area would be most likely.

It remains to be seen whether a range will form between $1,950 and $1,975. Should $1,950 - $1,960 become resistance, a move lower to $1,915 in the medium term would not surprise. Encouragingly, however, silver bounced hard off support at $24.90 overnight.

US equity index futures are following through on yesterday’s intraday gains this morning. The contrarian trade continues to be on the long side of the equity space, in this trader’s opinion. With a slew of perceivably stock market negative catalysts still hanging overhead, traders may want to consider the asymmetrical risk/reward profile in favor of a move higher, should any of the ongoing factors currently driving fear show a path to resolution.

Thanks and have a great day,

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.