Silver/Gold Price Ratio Reversal Sends Monster Bullish Message
Chris Kimble | Jul 21, 2020 03:05PM ET
Precious metals continue to outperform in 2020 as uncertainty rules the day. Gold took the lead early and rallied sharply. Now, silver is following suit.
When silver joins the party, it tends to add “beta” to the rally, similar to the way the stock market likes when small caps join the party.
Hi Ho Silver!
In today’s chart, we look at the ratio of silver to gold prices on a monthly basis.
A quick move below 30-year support (turned resistance) created a bullish reversal at (1).
Now, the silver-to-gold ratio is working on breaking back above the 30-year resistance line at (2).
This reversal has silver working on a bullish reversal breakout pattern. And this is sending a short-term bullish message for silver. Stay tuned.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.