The Silver/Gold Ratio would lead the precious metals and inflation trades higher
Unless it’s an FOMC week whipsaw to end all FOMC week whipsaws (there’ve been one or two doozeys on this correction alone) Silver is picking up the pace in relation to gold as would be the case during an inflationary phase that is indicated to get more intense, not less so.
Here is the daily chart making a break for it.
And the weekly chart for the perspective of where the ratio has been, first in its long march downward from the 2016 rally to 2020’s crash/reversal whipsaw to its conspicuous hold of the key support area * before the bump upward yesterday and today. At the very least we can say good work so far. Now let’s get FOMC’s ass riding safely off into the sunset before getting too excited.
* I am one who views ratios as having valid support/resistance levels just like regular stocks and markets, just with more inputs built in due to two separate markets being factored.
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