Wednesday 17 July 2019

Silver to break to the upside soon?

Watching the trading over the past few days, silver has been outperforming gold. Yesterday (Tues 16 July) in particular, gold was flat to down, whist silver was up around 35 cents. The 3-day charts on www.kitco.com clearly showed the trading for silver was stepping higher over the past three days whilst gold was within a tight trading range.

Now, today, there are up-moves in both metals, gold +1.26%, silver +2.58% about a 2x out-performance on the upside move.

There has therefore been a down-move in the gold:silver ratio from its extreme levels of late around 95:1. A gap in fact. Will this gap be "filled" as many like to predict in these instances? Is a gap in a ratio like this as valid as a gap on the open in a stock and how about in commodities like these where there is nearly 24 hour trading - although I guess stock futures trade out of hours too? I cannot tell.