Silver is slumping this morning, back below $19.50 at its lowest level in 6 weeks. Gold is fading also but remains coiled around the $1350 level for now. While both well above pre-Brexit levels, we note that the Gold-to-Silver ratio is recovering after slumping post-Brexit…
Silver is suffering…
Gold is more stable for now…
A triangle-shaped formation has kept prices in check since early July, when the metal traded between $1,310 and $1,370 an ounce. Now, gold is likely to move out of the triangle and start rallying, said Andy Pfaff, chief investment officer for commodities at MitonOptimal Group in Cape Town.
As the gold/Silver ratio jumps back to pre-Brexit 'norms'
As Bloomberg notes, Gold is poised to continue outperforming silver in the near-term after XAU/XAG broke out bullishly from a one-month triangle pattern this week, Bloomberg technical analyst Sejul Gokal writes, with a ratio of 72/73 as a short-term target (100-day moving average).
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