Gold Trend Analysis, Elliott Waves and Silver Ratio / Commodities / Gold & Silver 2020
Gold / SIlver Ratio
Gold price of $1560 divided of by the silver price of $18.07 results in a ratio of 86.3! The historic norm is for around 50. No I am not saying that Silver should trade to a ratio of 50 to Gold anytime soon. I will cover the prospects for the Silver price in a separate analysis.
So either Silver is CHEAP or Gold is EXPENSIVE, probably a mixture of both, which implies to expect Gold price weakness..
Trend Analysis
Gold breached $1566 and is now consolidating in advance of the next leg higher back through $1566 and then beyond the $1613 high set a couple of weeks ago.
MACD - The MACD shows that Gold is overbought and entering a corrective phase in terms of time at least i.e. the gold price may not fall much from where it currently trades, but neither is it likely to blast higher.
RESISTANCE : Gold is trading very near resistance of $1566 and then $1613. However the whole area from $1530 to $1630 is longer term resistance, which implies to expect choppy price action.
SUPPORT : Immediate support is at $1520 and then $1500. So downside looks very limited.
ELLIOT WAVES: Look very bullish, i.e. implies Gold is in impulse wave 5 that could run for another couple of months. So contrary to most of the above analysis.
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By Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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