by Anna Coulling:
"Whilst it is generally true to say that gold and silver tend to follow one another in terms of market trends and price action, this is not always the case. In trading, correlations between markets and instruments do fall out of step from time to time, and this is certainly the case with gold and silver at present on the daily chart. Whilst not an extreme example perhaps, nevertheless, silver futures have picked up some bullish momentum in the last few days, a sentiment which has been lacking for gold, which remains waterlogged in sideways congestion for the time being. The two metals are of course very different, with gold remaining the ultimate safe haven hard asset, and whilst silver is still considered by many to be a ‘precious metal’, and bought and sold accordingly, it is in fact classified as an industrial metal, and therefore, like copper, will often reflect broad economic sentiment, rather than risk. Despite this, the gold/silver ratio is one of the most closely watched as a pointer to whether one or other is oversold or overbought. So what do we see on the daily silver futures chart at present? ..."