Silver rises in price against gold
The gold to silver ratio is adjusted down from the historical maximum. Will the decline of XAUXAG quotations continue?
Such dynamics is observed when gold becomes cheaper, and silver becomes more expensive. The cost of gold fell against the strengthening of the dollar after the publication of good macroeconomic indicators in the United States. Growth in retail sales in June exceeded forecasts and amounted to + 0.4% compared with June. Year to year, retail sales grew by 3.4%. Positive US statistics may limit the potential rate cut by the Fed. Silver quotations, on the contrary, soared yesterday a 4-month high. Some very important reasons for this growth have not been voiced. However, it can be noted that for 10 years the world balance of silver has a stable annual deficit, covered by global reserves. So, in 2018, the global deficit was 80 million ounces. In addition, investors have noted an increase in demand for investment coins and silver bars against the background of sharply rising gold.
On the daily timeframe XAUXAG: D1 adjusted from the historical maximum. Various technical analysis indicators formed bearish signal. Decrease in quotations is possible if high demand for silver remains.
Technical Analysis Summary
Position Sell
Sell stop Below 89,9
Stop loss Above 93,4
The gold to silver ratio is adjusted down from the historical maximum. Will the decline of XAUXAG quotations continue?
Such dynamics is observed when gold becomes cheaper, and silver becomes more expensive. The cost of gold fell against the strengthening of the dollar after the publication of good macroeconomic indicators in the United States. Growth in retail sales in June exceeded forecasts and amounted to + 0.4% compared with June. Year to year, retail sales grew by 3.4%. Positive US statistics may limit the potential rate cut by the Fed. Silver quotations, on the contrary, soared yesterday a 4-month high. Some very important reasons for this growth have not been voiced. However, it can be noted that for 10 years the world balance of silver has a stable annual deficit, covered by global reserves. So, in 2018, the global deficit was 80 million ounces. In addition, investors have noted an increase in demand for investment coins and silver bars against the background of sharply rising gold.
On the daily timeframe XAUXAG: D1 adjusted from the historical maximum. Various technical analysis indicators formed bearish signal. Decrease in quotations is possible if high demand for silver remains.
- The Parabolic indicator indicates signal to decrease.
- The Bolinger bands expanded, indicating a volatility decrease. The top line slopes down.
- The RSI indicator is below 50. It has formed a divergence to decrease.
- The MACD indicator gives bearish signal.
Technical Analysis Summary
Position Sell
Sell stop Below 89,9
Stop loss Above 93,4