Friday, September 16, 2016

Chances For Higher Gold Prices Are Growing

As you know I am not a fan of a typical technical analysis but sometimes a little bit unorthodox approach delivers interesting signals. Look at the chart below:

The chart shows the well known relationship between gold and silver (lines marked in black). Generally, when gold goes up silver goes up even more. And vice versa - when gold goes down silver falls even faster.

When the pattern breaks, be careful because something bigger may develop soon.

The chart above shows such a case. In middle August 22, 2016, although gold was still in its downward trend (downsloping line marked in red), silver started to show its strength (upsloping line marked in green). Shortly after gold renewed its upward trend.

Since September 12, 2016 the same pattern has been drawn. Although gold is going down at the moment, silver is stronger than gold. The chances for higher gold prices are higher now...

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