Precious metals are having a strong year in 2020. So is it any surprise that Silver has been leading Gold higher?
As I’ve said before, Silver is to precious metals what small-cap stocks are to the broad market… it’s always beneficial when they lead
In today’s chart you can see this plain and simple. We have a “weekly” chart of the Silver/Gold ratio and you can see how the ratio has surged higher this year (with Silver leading).
Several times in the past, the ratio has been mired in a downtrend before breaking out at each point (1). The ratio is testing the top of its current downtrend channel at (2), which comes into play as resistance at this time.
If the ratio succeeds in breaking out at (2), look for silver to confirm its leadership role and underscore continued strength in precious metals. Stay tuned!