Precious metals have gained momentum of late. Especially Silver NYSEARCA: SLV, which had been lagging Gold NYSEARCA: GLD for some time.
This is good news for metals heads, as the precious metals industry loves it when Silver leads.
In today’s chart, we look at the Gold to Silver price ratio. With silver leading the way, this ratio is testing important support at (2).
Metals bulls want this support to give way. Why?
In the past, when the Gold to Silver ratio broke multi-year support at each (1), it leads to strong rallies for both Silver and Gold.
So if a breakdown takes place once again, it should good news for precious metals… and especially Silver. Stay tuned!