If the Silver/Gold ratio bottoms and turns up, many markets will have a new and positive input, at least in the interim
So why don’t we watch the Silver/Gold ratio (or its evil brother, the Gold/Silver ratio), eh?
Simply put, if silver leads gold, the indication is for a broader bullish macro than if gold is leading. Silver has more pro-economy, pro-inflation, pro-industrial, pro-cyclical characteristics than gold. If a positive Gold/Silver ratio is a positive indication for the reserve currency, USD, then a negative GSR and positive Silver/Gold ratio is a negative one. At least in the interim.
It is no coincidence that USD is wobbling in its rally while the Silver/Gold ratio is grinding for a low in its decline.
So, is the Silver/Gold ratio bottoming? It made something of a ‘W’ low with some minor RSI and MACD divergence. But the trigger is the area of the downtrend channel top, the downtrending SMA 50 and the previous recent highs of the pattern.
Party on, guys?
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can easily subscribe by Credit Card or PayPal (see all info and options). Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar, or take it to another (intermediate) level with our free eLetter. Follow via X @NFTRHgt. Also, a new tier of service is coming soon, as NFTRH++ will offer technical trading signals. More info on NFTRH++ here.
