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Gold to Silver ratio has resumed lower

Gold-to-Silver ratio had an overshoot to the upside during the Covid-19. It ended the all-time high on March 2020 at 126.4. The peak time is similar to the major low in World Indices. The ratio then quickly corrected lower in just 1 year to 62.51 and bottomed on February 2021. It has since traded in sideways for the last 3 years. However, the ratio has now started to turn lower and resumed the downside. Let’s see the latest daily outlook of AUG below.

Gold to Silver ratio daily chart

Gold-to-Silver ratio (AUG) daily chart above shows the selloff from March 2020 peak unfolded in 5 waves impulse. It ended in wave a at 62.51. The ratio then corrected in 3 waves as a zigzag Elliott Wave structure. Up from wave a, wave ((A)) ended at 82.13. Wave ((B)) dips ended at 74.65. The Last leg wave ((C)) ended at 96.49 which completed wave b. Note that the rally finished at the 100% – 161.8% fibonacci extension of wave ((A)). This supports the idea that the right side is bearish.

The ratio has turned lower in wave c. Down from wave b, wave ((1)) ended at 74.63. Wave ((2)) rally ended at 92.1 as a zigzag. The ratio has now turned lower in wave ((3)). Down from wave ((2)), wave 1 ended at 85.06 and rally in wave 2 rally ended at 90.13. It has then resumed lower again. Expect the ratio to extend lower in months to come, supporting both Gold and Silver. It also suggests Silver will from now on outperform Gold

Author

Elliott Wave Forecast Team

Elliott Wave Forecast Team

ElliottWave-Forecast.com

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