Technical Analysis – Gold / Silver Ratio – Supporting bullion rally

Dec 10, 2013 - 12:57 PM GMT
Short Term:
Medium Term:
Long Term:
R1 64.12 Recent high
R2 67.40 July peak
R3 68.70 Aug 2010 high
R4 71.43 Feb 2010 high
S1 61.51
S2 59.68 Nov low
S3 58.44 Oct low
S4 56.94 August low

Technical Comment


  • After a strong run-up in the ratio, it now looks as though the ratio is correcting, wth a recent support level at 61.51 now the first line of support.
  • The pullback in the ratio suggests sentiment might be turning more bullish – it points to buying coming into silver as a cheaper proxy for getting into gold.


A drop below 61.50 would start to look more interesting in terms of suggesting a stronger run-up in bullion prices.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.