Facts:
- The gold-to-silver ratio is above 100, compared to its 10-year rolling average of around 80.
- The RSI is in bullish divergence, while the MACD is narrowing.
- Ongoing uncertainty has driven a risk-off sentiment in the markets.
Recommendation:
- Transaction: Long position on Silver at market price
- Target: 33.219
- Stop: 29.732
Opinion:
Gold appears overvalued relative to silver, primarily due to heightened demand amid market uncertainty. This creates potential for the gold-to-silver ratio to revert toward its long-term average, suggesting silver could outperform gold in the near term. The take-profit level is set at the 78.6% Fibonacci retracement level, while the stop-loss is placed at the 23.6% level. The MACD is tightening, signaling a possible bullish crossover, and the RSI remains in bullish divergence, supported by higher highs.
