Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Gold/Silver Ratio Corrects Off Multi-year High

PRECIOUS METALS
  • Spot gold extends the recent decline, touching the lowest levels since early February and showing (albeit briefly) below $1800/oz. The move puts gold lower for four of the past five sessions, and notably gold trades softer Friday despite the bounce in US equities off the week's lows (gold and stocks were well correlated intraday Thursday).
  • The greenback is mildly firmer, which will be adding some pressure as well as slightly higher US yields.
  • On a technical basis, gold remains vulnerable - Wednesday's move lower confirmed a resumption of the current downtrend. The sell-off resulted in a break of $1848.8, 76.4% of the Jan 28 - Mar 8 rally. This paves the way for a move toward $1780.4, the Jan 28 low.
  • The move in gold is not contained, however, with silver being the more notable underperformer in recent sessions. The move has prompted the gold/silver ratio to rally to multi-year highs this week, touching 88.5 - the highest level since mid-2020 on Thursday.

160 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Spot gold extends the recent decline, touching the lowest levels since early February and showing (albeit briefly) below $1800/oz. The move puts gold lower for four of the past five sessions, and notably gold trades softer Friday despite the bounce in US equities off the week's lows (gold and stocks were well correlated intraday Thursday).
  • The greenback is mildly firmer, which will be adding some pressure as well as slightly higher US yields.
  • On a technical basis, gold remains vulnerable - Wednesday's move lower confirmed a resumption of the current downtrend. The sell-off resulted in a break of $1848.8, 76.4% of the Jan 28 - Mar 8 rally. This paves the way for a move toward $1780.4, the Jan 28 low.
  • The move in gold is not contained, however, with silver being the more notable underperformer in recent sessions. The move has prompted the gold/silver ratio to rally to multi-year highs this week, touching 88.5 - the highest level since mid-2020 on Thursday.