FX Careers

The Gold Silver Ratio (GSR) has finally dipped below 80

The Gold Silver Ratio (GSR) has finally dipped below 80, aligning with expectations and driving a 6.50% surge in silver prices. This boost is attributed to a slight retreat in the US dollar and Treasury yields. Silver’s upward momentum pushed it above a critical threshold at 75,000 points since August 18th, 2023, with a noteworthy 6.5% rise. Contributing factors to this bullish trend include the Gold Silver Ratio trends, industrial indicators, and Chinese developments. However, sustainability hinges on robust US economic data and the dollar’s trajectory, influenced by the upcoming Jackson Hole policy event. Some argue that China’s efforts to stimulate its economy restrict short positions in select markets. Technically, as anticipated, the GSR dropped from 85.00 to 79.00, favoring Silver’s outperformance. A daily chart reveals an asymmetrical triangle, suggesting consolidation preceding a potential bearish trend. A break below 78.50 could confirm a downside, targeting 72.50-73.00, with interim bounces likely around 82.50/83.00. The ratios for the next 2-3 months appear weak, aligning with silver’s projected outperformance based on the Gold Silver Ratio expects to reach the level of 90,000 this year only.