With tense geopolitical situation between two world super powers, ongoing war, and banking crisis, there’s no shortage of black swan events. Gold and Silver have performed very well in this environment. After 3 years of consolidation, they look to have formed major low earlier this year and ready for the next bullish cycle. We will look at the Gold-to-Silver ratio (AUG) which has an inverse correlation to the underlying physical Gold and Silver. In other words, when the ratio is going higher, both Gold and Silver go down. Conversely, when the ratio turns lower, both Gold and Silver go up in price. In both cases, Silver outperforms Gold in upside as well as 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 decline from March 2020 high is in 5 waves impulse and ended wave a at 62.51. It then did a 3 waves zigzag corrective rally. Up from wave a, wave ((A)) ended at 82.13 and pullback in wave ((B)) ended at 74.65. Last leg wave ((C)) ended at 96.49 which completed wave b. It completed the corrective rally at the 100% – 161.8% fibonacci extension of wave ((A)).
The ratio has turned lower in wave C. Down from wave b, wave ((1)) ended at 74.63. Corrective rally in wave ((2)) has also ended at 91.81 as a 3 swing zigzag. It ended the correction also at the extreme blue box area. The ratio has turned lower and we should expect it to continue lower in months to come.
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 www.Elliottwave-forecast.com 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 www.Elliottwave-forecast.com 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.