RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver Futures on The Move

Posted 08/30/2019 7:36AM CT | Eli Tesfaye

The chart below shows Gold/Silver ratio is favoring silver after hitting milt decade high. So, the moral of the story is that silver has more upside relative to gold. I would expect the spread to trade down to 60.00 area in the coming months. What I find even more interesting is that the U.S. dollar is very strong and so is silver. The U.S. Fed is struggling with pressure from President Trump and whispers of recession around the globe causing uncertainty in other investments. Silver having performed so well in this multi-month rally even with such a strong U.S. dollar could be considered very bullish indeed. There is strong chance the upcoming U.S. election season will inject further anxiety into equities causing indices to dip down even further which would support precious metals even further and could see silver go to $24.00 and beyond! Positive headlines could cause a pause in this rally but pull backs could become buying rather than selling opportunity.

Gold Silver Ratio Weekly Chart
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Eli Tesfaye

Senior Market Strategist
Eli started his career in the futures and options market while he was in graduate school finishing up his MBA in 2003. Eli specializes in Automatic trading strategies and systematic options trading strategies in futures market. He has been Series 3 license holder since 2005. Eli's is an avid reader, runner, and yoga practitioner.
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