The precious metals of Gold and Silver saw net December declines of -$40.00 (1.5%) to $2611.00, and -$1.87 (6.0%) to $29.24 respectively.
Gold, monthly1b
Silver, monthly1b
Summary
Gold: printing the $2761s, if cooling back to settle in the $2641s. Higher bond yields nor a stronger dollar helped. Price
momentum ticked lower for a second month, but remains on the high side. I would note the
monthly 10MA at $2495, which was settled above, as the m/t
trend remains bullish.
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Silver: printing $33.33, but cooling back to settle at $29.24. Momentum ticked lower for a second month downward, if remaining on
the moderately high side.
I would note the monthly 10MA at $29.43, which was settled below, as the
m/t bullish trend has been broken.
The problem will be if the equity
market sees any cooling in early 2025. Further downward pressures would be
if the dollar continues to strengthen, or if bond yields increase.
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Relative to 2011 - when Gold $1923 and Silver $49s, gold is still
outperforming 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 90.32, 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.
Price action is far more important than any ratio.
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With Bitcoin recently printing a new historic high of $108369, the
gold-Bitcoin ratio remains on the very high side, currently 35.36. Its a
curious thought to realise that it takes a little more than 35x 1oz gold coins to
purchase a digital crypto coin, the latter of which has an intrinsic
value of $0.00
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