Trying to find silver's glow again
Used with permission from Bloomberg Finance LP, as of 7 November 2019.
Silver peaking at 19.65 in early September was aligned with toppish technical signals, as reflected in the chart's red arrows.
The advance towards 19.65 was marked by a sharp plunge in the XAU/XAG (gold/silver ratio) from 93.46. In such a decline, silver’s demand outpaced that of gold. That ratio’s reversal at 79.12 also matched silver’s peak at 19.65; gold regained price leadership over silver, pushing silver prices lower. But it was not solely silver’s predicament – gold languished too as it recently dropped to a 1459-low. The rising tide that lifted all boats had receded.
Silver prices have since consolidated over the last two months. It now hovers over the trendline support rising from 14.29, and that allows a tactical opportunity.
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