(Kitco commentary) - Last I wrote – I suggested Platinum was ready to outperform Gold, citing the ratio as just one example of evidence leading to that conclusion. Since then platinum put on approximately 20% at $1095 last week (from sub $900); keeping pace with silver gains.
Now it’s the gold/silver ratio that has my attention; as it has in my opinion bounced convincingly off a long term support line. Monthly chart below.
Should the ratio break below support – then the next level down is the yellow rectangle, and metals bulls would rejoice. Should the ratio do what I believe to be most probable, which is continue to turn up, then metals bulls should rejoice still, for the opportunity to get their hands on physical at a lower price.
Below shows a target for silver at the rising trendline, and then another lower down in the yellow rectangle
And here, the same for gold:
Thank you.
