‘Eliminating’ is a strong word, but if the Gold/Silver ratio (GSR) is breaking down from its recent hold of the SMA 50 and upturn, then it would be beneficial to still-recovering global asset markets in the near-term.
The concern as expressed in NFTRH 717 was that the GSR had held the SMA 50 and turned back up while its fellow liquidity destroyer, the US dollar was making a hint to do the same. Well, USD is still in that posture although it is in the red today. But if it loses the GSR as a companion the implication would ease concerns about the very near-term prospects for the general relief rally.
To review, silver is more commodity and less monetary than gold. It is also more pro-cyclical. Hence, when the GSR declines (Silver/Gold rises) the implication is that there is suitable market liquidity and cyclical momentum in play. We are and have been only talking about the summer phase. But if GSR breaks down that phase can continue.
