The $18.75 target manifested in silver this morning as the spot price hit that exact number before retracing to $18.90, which trades as of this writing. Gold, on the other hand, is holding up relatively well after printing its own lower low at $1,725 last night.
Is the low in? In this trader’s opinion, the risk of a long position in metals decreases as sentiment continues to plunge while price becomes over-stretched to the downside and as significant support levels discussed on Friday come into play.
The gold to silver ratio on the weekly timeframe shown below is also stretching and has approached Fibonacci resistance. At the same time, the Euro is trading at par with the dollar and is approaching its own Fibonacci support.
Caution: Although this may now be the outlier, should the euro breakdown further to test the 2002 lows, a move back up to the 108 level in the GSR would not surprise. Interestingly, that would still be a lower low in the ratio, as compared to 2020 high.
Thanks and have a great day,
