Silver vs Gold….Who is winning the battle?

Silver vs Gold….Who is winning the battle?   In the last couple of days, I am hearing how Silver is winning more than Gold.   In another words, Silver is going up higher percentage basis compared to Gold.    People are also stating that this occurs in Bull market.    Let’s evaluate to see if this is really true.

Looks look at the weekly charts first and then drill into the daily charts.

Here is the Ichimoku Weekly chart of Mini Silver Futures provided by Tradestation.   Price is in the cloud so the sentiment is long term consolidation.   Only if it is above the cloud will the sentiment change to bullish.  To do that, it has to break the resistance at 16.480

2016-04-13_weekly_silver

Here is the Ichimoku Weekly chart of the Mini Gold Futures provided by Tradestation.   In the last couple of weeks, the sentiment has changed to bullish.    1197 is the support that is keeping the sentiment bullish.   As long as this support hold, Gold will be bullish.

2016-04-13_weekly_gold

Here is the relative strength of Silver vs Gold.   If the chart is going down, this means gold is stronger than Silver.   If the chart is going up, Silver is stronger than Gold.

Price is below the cloud so the sentiment is bearish.    You have a big green bullish bar this week which is indicating that Silver has gotten stronger this week but it is hitting a major resistance right now i.e. green line.    The long term view is that Gold is still stronger than Silver.

2016-04-13_weekly_rs

Here is a comparison of the Relative Strength chart of Silver vs Gold against the E-mini Sp500 futures.   We are looking at this chart to see if there is a correlation of the US Stock market vs the Relative Strength of Silver vs Gold.    We have show vertical lines.   The first one indicates where Silver went stronger than Gold.   The second vertical line indicates where Gold went stronger than Silver.    If you at the US stock markets at these two vertical lines, you can see there is NO correlation at all.

2016-04-13_es_rs_weekly

 

Here is the daily chart of Mini Silver Futures provided by Tradestation.   It shows that Silver has made a huge bullish movement in the last couple of days.  This is a short term movement.  The weekly time frame shows the long term view.

2016-04-13_daily_Silver

Here is the daily chart of Mini Gold Futures provided by Tradestation.  The sentiment is bullish but it is consolidating now with probabilities to the bullish side still.  This is the short term view of Gold

2016-04-13_daily_gold

 

Here is the Relative Strength of Silver vs Gold on a daily time frame.   The sentiment for the short term view has changed to be bullish where Silver is stronger than Gold.   However, analysis of the longer term view of the weekly chart shows that we are at a major resistance.   Also, the long term view shows we have very far to go to change sentiment to bullish.

2016-04-13_daily_rs

 

In conclusion, Gold is still STRONGER than Silver long term.    This will remain this way until price gets above the Cloud on a weekly time frame.    Price is still far away.    Also, there is no long term correlation between the US Stock markets vs the relative strength of Silver vs Gold.

 

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About the Author Manesh Patel