Silver Rises In Price Against Gold

Silver Rises In Price Against Gold By IFC Markets for Investing

NikkeiThe gold-to-silver ratio is adjusted down from the historical maximum. Will the decline of XAU/XAG quotations continue?

Such dynamics is observed when gold becomes cheaper, and silver becomes more expensive. The cost of gold fell against the strengthening of the dollar after the publication of good macroeconomic indicators in the United States. Growth in retail sales in June exceeded forecasts and amounted to + 0.4% compared with June. Year to year, retail sales grew by 3.4%. Positive US statistics may limit the potential rate cutby the Fed. Silver quotations, on the contrary, soared yesterday a 4-month high. Some very important reasons for this growth have not been voiced. However, it can be noted that for 10 years the world balance of silver has a stable annual deficit, covered by global reserves. So, in 2018, the global deficit was 80 million ounces. In addition, investors have noted an increase in demand for investment coins and silver bars against the background of sharply rising gold.

XAU/XAG

XAU/XAG

On the daily timeframe XAU/XAG: D1 adjusted from the historical maximum. Various technical analysis indicators formed bearish signal. Decrease in quotations is possible if high demand for silver remains.

  • The Parabolic indicator indicates signal to decrease.

  • The Bolinger® bands expanded, indicating a volatility decrease. The top line slopes down.

  • The RSI indicator is below 50. It has formed a divergence to decrease.

  • The MACD indicator gives bearish signal.

The bearish momentum may develop if XAU/XAG drops below its last low: 89.9. This level can be used as an entry point. The initial stop lose may be placed above the last three upper fractals, the historical maximum and the Parabolic signal: 93.4. After opening the pending order, stop shall be moved following the the Bollinger and Parabolic signals to the next fractal minimum. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place a stop loss moving it in the direction of the trade. If the price meets the stop level (93,4) without reaching the order (89,9), we recommend to cancel the order: the market sustains internal changes that were not taken into account.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.