Silver/Gold Ratio Attempting Seven-Year Breakout (GLD)

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June 16, 2018 6:37am NYSE:GLD

From Chris Kimble: The chart below looks at the Silver ETF (SLV), Gold ETF (GLD) ratio over the past 10 years.


Metals bulls want to see this ratio heading higher and since 2011, the opposite has been happening. The large decline over the past 7-years has this key ratio testing important support, where a long-awaited opportunity could be near.

The ratio has found line (1) as support a couple of times over the past decade. It hit this support line of late and is now working on a breakout of 7-year falling resistance at (2). Historically when this ratio is moving higher, it is sending a positive message to both Silver and Gold.

Below looks Silver Futures over the past 7-years-

CLICK ON CHART TO ENLARGE

Silver has been trading in a very narrow range for the past couple of years, as it is forming a narrowing pennant pattern.

It is now testing 2-year and 7-year break out levels at the same time at (1). If Silver breakouts out at (1), it should attract buyers and push Silver higher.

If you would like to stay on top of opportunities in the Silver, Gold, Miners and Copper markets, we would be honored if you were a Metals Member.


The SPDR Gold Trust ETF (GLD) closed at $121.34 on Friday, down $-2.04 (-1.65%). Year-to-date, GLD has declined -1.87%, versus a 4.26% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.


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