Gold Market Commentary - Thu 14 Jun, 2018

The Korelin Economics Report

Silver/Gold ratio working on 7-year breakout!

The silver/gold relationship is a key one to watch. Silver is finally outperforming gold and more importantly silver moving up while gold is holding steady (even in the face of good economic numbers and a hawkish Fed). As our friend Chris Kimble, from Kimble Charting Solutions points out this ratio is breaking out of a long-term downtrend line. While this ratio could quickly reverse this is a very good sign for the PM bulls and signifies a potential shift in the PM sector.

Click here to visit Chris’s site for more straight forward market comments.

CLICK ON CHART TO ENLARGE

This chart looks at the Silver ETF (SLV), Gold ETF (GLD) ratio over the past 10-years.

Metals bulls want to see this ratio heading higher and since 2011, the opposite has been happening. The large decline over the past 7-years has this key ratio testing important support, where a long-awaited opportunity could be near.

The ratio has found line (1) as support a couple of times over the past decade. It hit this support line of late and is now working on a breakout of 7-year falling resistance at (2). Historically when this ratio is moving higher, it is sending a positive message to both Silver and Gold.

Below looks Silver Futures over the past 7-years-

CLICK ON CHART TO ENLARGE

Silver has been trading in a very narrow range for the past couple of years, as it is forming a narrowing pennant pattern.

It is now testing 2-year and 7-year break out levels at the same time at (1). If Silver breakouts out at (1), it should attract buyers and push Silver higher.

If you would like to stay on top of opportunities in the Silver, Gold, Miners and Copper markets, we would be honored if you were a Metals Member.

…read more

Source:: The Korelin Economics Report