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  • Gold and Silver ratio struggles while Silver remains relatively robust, albeit below the 21-DMA,
  • Bears will continue to  target the 61.8% down at 16.10 ahead of a run to the 200-day moving average down in the $15.90s.

Silver prices have been edging lower at the start of the week, falling some 0.80% from a high of $17.6210 to a low of $17.392 as precious metals give up the bid, with the value of the yellow metal also falling from a high of $1509 to a low of $1488.10, down over 1% on the day.  

  • More here on Gold’s drop today:  Gold drops to five-day lows near $1,490 as markets start pricing a US-China trade deal

The Gold and Silver ratio, AUG/USD, is down 0.13% as gold tales the brunt of the sell-off, currently trading at 85.586 having travelled between 86.05 to a low of 85.39. As for futures, the white metal for Dec. delivery lost 8.5 cents, or 0.5%, to $17.54 an ounce, after booking a nearly 0.2% decline for the week while the yellow metal lost    $8.50, or 0.6%, to settle at $1,504.40 an ounce on Comex.  

The white metal, Silver, is prone to move in tandem with Gold, but it has been the second favourite in the wake of risk-off markets, playing catch-up at times of risk on, however as evident in the Gold/Silver ratio which had dropped around 15% this year before recovering back 50% of the drop to the 200-day moving average as signs of a global recession spark another flight to safety.

“For the precious metal bulls, the market’s lacklustre reaction to reports that the Chinese delegation will arrive in Washington with a narrowed scope for talks was certainly a disappointment,” analysts at TD Securities  added.

“While a series of US data prints suggested that the American growth engine may be at risk of stalling, and has seen October Fed pricing incorporate a near 75% likelihood of a cut, given the non-farm print failed to lock-in the October cut, and more importantly, the change in language vis-a-vis the prospect of further cuts, the market is likely to take a wait-and-see approach with trade talks as the next major catalyst for the complex.”

Silver levels:

The price of Silver is below the 21-day moving average still but the 50-day moving average has been pirced on today’s move.    Bears will continue to  target the 61.8% down at 16.10 ahead of a run to the 200-day moving average down in the 15.90s.  Bulls will need to overcome a triple-top target of 18.60/80 before a run to the 19.60s and September highs.