AUG( Gold/Silver Ratio), Showing A Five Waves From 03.18.2020.

The Ratio between Gold/Silver ( AUG) is a very good indicator of where the market is heading and especially the $USDX trade. The Ratio reached the extreme blue box area early this year when it trades into the 126.23 peaks. We at Elliottwave-forecast always relate the Market and understand how each instrument affects the other. When the Ratio reached the blue box area because we knew that the market was closed for a turn against the $USDX. And it will then affect the value of Silver in a quite simple equation i.e higher Silver means lower $USDX. Similarly lower Silver means higher $USDX. We will explain the forecast below.

Gold to silver ratio ( AUG) monthly  chart

The following chart represented the advance in the Ratio since the old-time lows, and show how the Blue Box area was reached.  Meaning a change in dynamics and how we see the relationship between Gold and Silver. The Ratio trading higher means that Gold holds the value more than Silver. But most important means the $USDX is supported. We understand many will not be able to see the relationship between Gold trading higher and $USDX trading either sideways to higher or sideways to lower. The Ratio is like commodities crosses it is a balance between three instruments and always one needs to be sideways.
In this case, Gold, Silver, and USDX, we believe Gold will lag Silver into the news cycle and the $USDX will be the one losing ground. While Gold was leading Silver since 2016. It has been trading higher while Silver trade sideways and even took 2016 low. While $USDX makes a new high in the same period. The blue box reaching means the dynamics change and consequently knowing that will allow traders to get the best out of the Market. Early this year, we presented an article that explains exactly what the Market has been doing.

The article explains that Silver was about to turn higher and the $USDX will turn lower. As right now, we know the Ratio reached the Blue Box and turned lower. We already saw $XAGUSD (Silver) rally and $XAUUSD(Gold) taking the 2011 peak, which was expected. Now, something else has happened, the Ratio is showing a clear five waves decline off the peak at the Blue Box. The idea is explained in the following chart:

Gold to silver ratio ( AUG) daily chart

The Idea presents the path into three waves bounce and then should see more downside. It will present a unique opportunity for those that understand how the Market works. As we always said, the Market is a series of three instruments, and the five waves lower in the ratio are telling us who will be the winner and who will be losing. The Five waves are telling us where to place our investment and why the $USDX will be the one losing. But also will be telling us that Silver will rally a lot and will be a long term opportunity.

FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.


EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 


XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors