Gold price action continues to disappoint bullish traders
Gold has risen a modest 0.30%, to $1734.10 an ounce today in directionless trading. The modest gain though, cannot disguise the underwhelming performance of gold over the past week.
Gold has failed to close above its $1750.00 an ounce resistance zone multiple times last week, and the resurgence of global economic hopes saw the yellow metal retreat as low as $1717.00 an ounce.
Gold to silver ratio drops below 100-day SMA, eyes fresh 2.5-month lows
Gold to silver ratio, which indicates how much silver can be bought for one ounce of gold, has declined below its 100-day simple moving average (SMA) of 101.24, and could soon set fresh 2.5-month lows under the May 20 low of 99.50.
The ratio hit a high of 126.56 on March 18 and has been falling ever since. It has declined from 115.35 to 100.00 in the last three weeks, courtesy of the sharp rise in Silver.
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