Precious metals continue to outperform in 2020 as uncertainty rules the day. Gold took the lead early and rallied sharply. Now, silver is following suit.
When silver joins the party, it tends to add “beta” to the rally, similar to the way the stock market likes when small caps join the party.
Hi Ho Silver!
In today’s chart, we look at the ratio of silver to gold prices on a monthly basis.
A quick move below 30-year support (turned resistance) created a bullish reversal at (1).
Now, the silver-to-gold ratio is working on breaking back above the 30-year resistance line at (2).
This reversal has silver working on a bullish reversal breakout pattern. And this is sending a short-term bullish message for silver. Stay tuned.