RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver is Flying High

Posted 07/19/2019 10:12AM CT | Eli Tesfaye

September 2019 silver futures have taken out the downtrend are looking to reach the June 2018 highs of $17.50. We will have to review the COT report coming out today to see where we sit with net long positions. As of the last report, it was not overbought, but according to HT report this morning, it will not be overbought until silver hit over 90k contract long.

The chart below is what I would like to get everyone’s attention on. This gold/silver ratio has been showing a sign of pulling back. Silver is still cheaper relative to gold. I think we now start to see that silver is coming back in strides to regain its “shine.” Again, as I said before, equities are becoming chaotic due to devolving U.S./China trade talks, escalating tension and potential conflict with Iran, and an expectedly ugly 2020 presidential election. It appears that money may start to move into “something you can hold onto.”

Gold/Silver Ratio Daily Chart

Gold/Silver Ratio Daily 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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