Silver, Gold and the Silver/Gold ratio (SGR) status
Just some ongoing micromanagement of silver and gold. I put silver first because as noted in NFTRH 845, we should watch silver for leadership in the precious metals as well as a would-be positive view in commodities, resources and other inflation trades.
Silver tested the break above the SMA 50 and the wedge (handle) and today it is positive. There is no other way to term this than “still constructive, turning bullish”. If it is real, we target 42.
Gold has poked through the resistance of the last two highs on this 3rd try, which we noted was quite doable as it was the third test and resistance becomes weaker the more times tested.
Both precious metals look almost too bullish, technically. As a long time precious metals guy, I of course naturally suspect this situation. But that is over-thinking. If current status of each metal holds we target 42 for silver and 3000+ for gold. That is the TA in me speaking, not the conspiracy theorizing goldbug lunatic.
The Silver/Gold ratio has trended down since making a reversal signal on October 23 after its rally off of the previous ‘W’ bottom. RSI and MACD seem to think a small bottoming pattern could form here. There is nothing actionable going on in the ratio, but if this were to prove to be a bottom and it breaks out of the channel and above the SMA 50, it would be a solid tailwind for gold, silver and the miners in their bullish prospecting.
