News Bites
The gold vs silver ratio hits a 2 year high
(Kitco News) - The gold/silver ratio has hit a 2 year high. Silver has been moving lower in recent sessions and has recently taken out significant support at $20.46/oz. Gold has also been looking subdued but the consolidation low is still holding. Silver often moves in a more volatile style vs the yellow metal but looking at the more economically tangible metals like aluminum, zinc, and copper have all taken moves lower recently. The gold vs copper ratio has also just moved higher and taken out 500.00 up 23% in the last 4 weeks.
Gold has been struggling to hold above $1800/oz in recent sessions but there is a hammer candle on the daily chart that suggests it could. Looking at the gold vs silver chart (weekly) below the price has broken out of a converging pattern (wedge). The top of the pattern could be a support zone and below that there is another support at the purple horizontal line.
On the topside, there is a bit of traffic coming up. The next is the orange area at 93.30. It is also the 50% Fibonacci retracement area from the swing high to the swing low. For now, the price is making higher highs and higher lows and gold is holding up better than silver.
