The Gold/Silver ratio (GSR) tracks the relative performance of Gold over Silver, i.e. a breakdown of the chart indicates a stronger Silver performance relative to Gold.
In this chart I present a decision time for the GSR, where in the lower pane, in the past we can see a cross-over of the dollar strength (DXY) relative to sugar futures (SB1!) has been an inflection point for the GSR.
Sugar, as an analogy for real inflation and commodities more widely, has tended to outperform the dollar in a macro environment that is more favorable for silver outperformance.
At this crossover point in the lower pane, we may see rejection or a follow-through, I'm favoring the latter. The cross-over follow-through may have strong implications for silver performance.
Zoom out. Chill out.
In this chart I present a decision time for the GSR, where in the lower pane, in the past we can see a cross-over of the dollar strength (DXY) relative to sugar futures (SB1!) has been an inflection point for the GSR.
Sugar, as an analogy for real inflation and commodities more widely, has tended to outperform the dollar in a macro environment that is more favorable for silver outperformance.
At this crossover point in the lower pane, we may see rejection or a follow-through, I'm favoring the latter. The cross-over follow-through may have strong implications for silver performance.
Zoom out. Chill out.