The precious metals of Gold and Silver saw net October gains of +$89.90 (3.4%) to $2749.30, and +$1.34 (4.2%) to $32.80 respectively.
Gold, monthly20
Silver, monthly20
Summary
Gold: A new historic high of $2801.80, if cooling back to settle in the $2749s. The seventh net monthly gain of eight. Price momentum ticked upward, and is on the very high side. I would note the monthly 10MA at $2375, which was settled above, as the m/t trend is bullish.
Considering the October increase in bond yields and the stronger dollar, gold performed even better than it might seem. A hit of giant psy' 3K remains on track before year
end.
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Silver: an October high of $35.07, but cooling back to $32.80. The sixth monthly gain of eight. Momentum ticked upward, and remains on
the moderately high side.
I would note the monthly 10MA at $28.00, which was settled above, as the
m/t trend is bullish.
The problem will be if the equity
market sees any cooling into year end. Further downward pressures would be
if the dollar strengthens, or if bond yields increase.
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Especially relative to 2011 - when Gold $1923 and Silver $49s, gold is still leading silver. Even the bold will continue to favour gold, which would better capture a geo-political 'fear bid'.
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The gold-silver ratio stands at 83.83, and remains historically high. I'd accept that on a very long term basis (5+ years) silver could be expected to outperform gold.
As ever, ratio charts should be especially treated with caution. Whilst October's ratio leaned a little in favour to silver, both commodities were powerfully higher for the month. Price action is far more important than any ratio.
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