Technical Analysis – Gold/Silver Ratio – Silver not supporting gold – yet!

Sun, 27 Apr - 11:03am
Short Term:
Medium Term:
Long Term:
R1 67.27 Recent high
R2 67.40 July peak
R3 68.70 Aug 2010 high
R4 71.43 Feb 2010 high
S1 65.03
S2 64.00
S3 59.98 Feb low
S4 59.89 Jan low
S5 59.68 Nov low
S6 58.44 Oct low
S7 56.94 August low
Stochastics:Weak, possibly turning higher again

Technical Comment


  • The run-up in the ratio of late shows silver has not been bought as a proxy for getting into gold
  • The ratio dropped yesterday into the rebound in bullion prices but the ratio is drifting again today. This suggests investor sentiment is not eager to get bullish again insofar as they are not looking to get into silver, which is relatively cheap compared with gold
  • We feel the ratio will need to start falling for a sustainable rally to get going in bullion prices. 


If the ratio starts to head lower, we would get more bullish for bullion and expect silver to play catch-up.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

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