Great Year for Precious Metals

Year 2019 certainly has been a good year for the Gold bulls. The metal accelerated its rally after President Trump announced 10% tariffs on the remaining $300 billion of Chinese imports. China then let the Yuan weaken and rise above 7 against the U.S. dollar for the first time in more than a decade. Currently, Gold's price is either near or at all-time high in most currencies except the U.S. dollar. Below, we can see the chart of Gold breaking to new all-time high against major currencies.


The chart below from Bloomberg shows the performance of world currencies against the U.S dollar. Precious metals get included as they do have the function similar to currencies. Central banks around the world also have them as a reserve. As the chart below shows, the top 4 best performing currencies against U.S dollar is all precious metals.

World Currency

The top performing ETF in August is also related to the precious metals as the chart below shows. With bond yields going negative, many investors who want to reduce risk go to alternative instrument including commodities.

Simply the Best

Gold to Silver Ratio Breaking Down


Overlay of Gold-to-Silver ratio chart together with Gold and chart above show an inverse correlation. We can see a period from 10.2008 to 4.2011 where the ratio went lower while the price of both precious metals rallied. We can also see a period from 4.2011 to end of 2015 when the ratio rose and the price of Gold and Silver both went lower. The ratio has recently started to turn lower again after forming a multi year high around mid 90s. The average of this ratio in the past 3 decades is around 60, and the natural earth ratio is currently 9. It means that for every 1 ounce of Gold mined from the earth, we can find 9 ounce of silver.


The ratio just last week decisively broke down and closed below the ascending trend line from April 2011. This suggests that more downside should be expected in coming months/years. With the ratio breaking down, and Gold breaking to new all time high against most world currencies, expect the precious metals to be the start performer in the months and years ahead.

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

Latest Forex Analysis

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.


GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.


USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.


Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Gold erases daily gains, eyes $1480

Gold failed to hold to gains and pulled back, approaching again the $1480 area. Earlier today the ounce rose to $1488 and as of writing trades at $1483, flat for the day but now with a bearish intraday bias.

Gold News

Forex Majors