Facts:
- The gold-to-silver ratio is above 101, compared to its 10-year rolling average of around 80.
- The RSI is at 54,2, while the MACD is at 0.1111.
- The 15- and 50-day SMA are nearing 32.72 levels.
Recommendation:
- Transaction: Long position on Silver at market price
- Target: 34.548
- Stop: 30.654
Opinion:
Gold appears overvalued relative to silver, primarily due to heightened demand amid ongoing market uncertainty. This creates the potential for the gold-to-silver ratio to revert toward its long-term average, suggesting that silver could outperform gold in the near term. The take-profit level is set near this year’s high, while the stop-loss is placed at the 38.2% Fibonacci retracement level. Both the MACD and RSI are consolidating, indicating a potential breakout in either direction. Meanwhile, the 15-day SMA is nearing a bullish crossover with the 50-day SMA, which may signal an upward move.
