The precious metals of Gold and Silver saw net September declines of
-$99.80 (5.1%) to
$1866.10, and -$2.36 (9.5%) to
$22.45 respectively. Monthly momentum remains positive, but the three concerns should be further dollar strengthening, higher bond yields, and a weak
Gold: printing $1980.20, but swinging lower to settle in
the $1866s - the lowest since March. A monthly close back under the key 10MA.
momentum was positive for a sixth month, but is due to turn negative as of Oct'2nd.
Any further upside in the dollar won't help, nor would any further rate hikes.
Silver: printing $25.22, but swinging lower to settle at $22.45, the lowest monthly close since February. A monthly close back under the key 10MA. Momentum was net positive for a sixth month, but is set to turn negative as of Oct'2nd.
Key threats to silver, will be if the equity
market sees further downside, and
if the dollar strengthens.
Of the two metals, I
favour Gold, especially for a potential geo-political 'fear bid', not least via Ukraine/Russia or China/Taiwan. I'd
accept silver has massively more upside potential than gold, but many
have been saying that since the $49s of 2011.
The Bitcoin > Gold ratio stands at 14.40, still half of what it was in 2021.
The gold > silver ratio stands at 83.12. Historically, this is clearly on the high side.
*as ever... all ratio charts are to be treated with an especially high degree of caution. Its very possible that gold AND silver can fall (or climb) at the same time, with the ratio itself remaining unchanged.
September's dollar strengthening, back into the DXY 106s, sure didn't help gold.
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