Gold/Silver ratio drops to 200-week SMA for first since April 2017

Gold/Silver ratio tests key support for the first time in over three years.
Despite the recent rally, silver remains well below the record high reached in 2011.
Gold is just 3% away from setting a new lifetime high.

Omkar Godbole FXStreet Contributor

Gold/Silver ratio has been sold off aggressively this week with silver outperforming gold by a big margin.

Ratio tests 200-week SMA

The ratio fell below the 200-week simple moving average (SMA) of 82.57 on Wednesday to print a low of 80.71. The 200-week SMA has come into play for the first time since April 2017, according to data source TradingView.

The ratio is currently seen at 82.75 points, representing an 11.5% drop on a week-to-date basis and a 34.6% decline from the high of 124.56 reached in March. As such, one may feel that Silver is not overbought or overvalued.

However, despite having rallied by 26% this year, the semi-precious metal is trading way below the record high of $49.83 observed in 2011.

On the other hand, gold is currently trading at nine-year highs above $1,865 and is just 3% short of setting a new record high above the September 2011 high of $1,920.

Put simply, silver has plenty of room to rally.

Technical levels

Gold/Silver Ratio

Overview
Today last price	82.75
Today Daily Change	1.47
Today Daily Change %	1.81
Today daily open	81.35

Trends
Daily SMA20	95.24
Daily SMA50	97.55
Daily SMA100	104.3
Daily SMA200	95.63

Levels
Previous Daily High	86.56
Previous Daily Low	80.77
Previous Weekly High	96.09
Previous Weekly Low	93.02
Previous Monthly High	101.74
Previous Monthly Low	94.8
Daily Fibonacci 38.2%	82.98
Daily Fibonacci 61.8%	84.35
Daily Pivot Point S1	79.23
Daily Pivot Point S2	77.1
Daily Pivot Point S3	73.44
Daily Pivot Point R1	85.01
Daily Pivot Point R2	88.68
Daily Pivot Point R3	90.8

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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