• 679 days Will The ECB Continue To Hike Rates?
  • 679 days Forbes: Aramco Remains Largest Company In The Middle East
  • 681 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,081 days Could Crypto Overtake Traditional Investment?
  • 1,085 days Americans Still Quitting Jobs At Record Pace
  • 1,087 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,090 days Is The Dollar Too Strong?
  • 1,091 days Big Tech Disappoints Investors on Earnings Calls
  • 1,092 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,093 days China Is Quietly Trying To Distance Itself From Russia
  • 1,094 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,097 days Crypto Investors Won Big In 2021
  • 1,098 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,098 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,101 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,101 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,104 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,105 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,105 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,107 days Are NFTs About To Take Over Gaming?
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Gold and Silver Triggers

Judging by the precious metals forums, it's confirmed... everyone is bearish and short gold and silver, waiting for Goldman Sachs prediction to come true. But what if they're wrong? More importantly, how will you know if those prognosticators are wrong and if they are wrong, won't the precious metals take off due to the wrong-sided short covering?

All very good questions and despite the majority of pundits being bearish and short, we just have a hard time joining them. If I recall, we already had an emotional washout of the longs in December 2013 and more recently this month. Also, the foreign currencies have been doing quite well and the dollar not so well, so doesn't this bode well for precious metals? Also, commodities have been on a tear and even today appear to be on the run again.

My preference is to watch the relative strength ratios and get an indication from them as to where the truth lies. Recently, the Silver/Gold ratio set lower lows, but without confirmation from the momentum of RSI or MACD. This would suggest, as it has in the past, that silver is about to outperform gold and that usually happens when both metals are moving up. Also, silver this week dropped to lower lows without gold doing the same, resulting in a non-confirmation. The ratio chart itself seems to have a bullish flag pattern that suggests a big move up is coming in this ratio.

$SILVER:$GOLD Chart
Larger Image

Many people have been talking about the bearish looking price charts of gold and silver, but the relative strength ratio charts look bullish and are telling a different story. It will be interesting to see how the markets pass judgment next week.

 

Back to homepage

Leave a comment

Leave a comment