This gold idea should not be read in isolation, please read other Gold ideas for some perspective why I think a short is high probability.
Now we all know that Gold and Silver are a correlated pair. and the main chart represents XAU/XAG and tracking that to 200 MA can show where gold is overvalued to silver and in particular how it is driven by media hype whether positive or negative.
The blue lines shows a period where Silver was overvalued relative to gold and that was followed by a market correction. The orange lines represents shows again where Gold is overvalued relative to Silver and I expect some market correction.
For the contrarian traders, I would suggest that Silver is a much better buying opportunity than gold at the moment.
Now we all know that Gold and Silver are a correlated pair. and the main chart represents XAU/XAG and tracking that to 200 MA can show where gold is overvalued to silver and in particular how it is driven by media hype whether positive or negative.
The blue lines shows a period where Silver was overvalued relative to gold and that was followed by a market correction. The orange lines represents shows again where Gold is overvalued relative to Silver and I expect some market correction.
For the contrarian traders, I would suggest that Silver is a much better buying opportunity than gold at the moment.
