• 270 days Could Crypto Overtake Traditional Investment?
  • 275 days Americans Still Quitting Jobs At Record Pace
  • 277 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 280 days Is The Dollar Too Strong?
  • 280 days Big Tech Disappoints Investors on Earnings Calls
  • 281 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 283 days China Is Quietly Trying To Distance Itself From Russia
  • 283 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 287 days Crypto Investors Won Big In 2021
  • 287 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 288 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 290 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 291 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 294 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 295 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 295 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 297 days Are NFTs About To Take Over Gaming?
  • 298 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 301 days What’s Causing Inflation In The United States?
  • 302 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Gold/Silver Ratio Collapsed This Week, But Sits at Bottom of Price Channel

This week we saw gold and silver explode, with both gold and silver closing above the 50 SMA and 200 EMA. This hasn't been the case in silver since February, and since March in gold.

Here's a look at the gold daily chart.

Gold Futures Daily Chart

What I found especially interesting, though, is that the gold/silver ratio collapsed this week. However, it closed right at the bottom of the price channel on the ratio, which coincides with the 50 SMA on the weekly chart.

Gold/Silver Ratio Chart

Is this time to buy the ratio?

Personally, I wouldn't; I think silver could outperform if this is truly the onset of a multi-year rally. If I was long silver and short gold, though, I think this might be a good time to close or de-risk that trade.

Incidentally, some cycle students, like Charles Nenner, expected gold to bottom in July.

 

Back to homepage

Leave a comment

Leave a comment