(Kitco Commentary) – Last I wrote, I suggested that silver was just about ready to pop; since then, silver has gone on to outperform gold in a drastic fashion.
Below is a weekly chart of the gold/silver ratio. Note the top last week at around the 90 resistance level, immediately proceeded by this week’s big red candle.
My expectation is that the ratio drops farther, for a test of the rising trendline. Note momentum turning down on the stochastic indicator with lower, horizontal support, represented by the yellow rectangle.
I continue to give metals bulls benefit of the doubt. I anticipate ( that a test of the 76 level would correspond to the $30 silver level, which implies a gold price of $120 higher than where spot currently sits.
Thanks and good luck,
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