Se7enSkies

Gold/Silver Weekly Chart Report

My eyes see a pattern that looks like a rising (ascending) wedge (known as a bearish pattern) on the weekly chart of the Gold/Silver. If this pattern completes, then I expect Gold to lose value against Silver. Since the pattern is trying to form in a long timeframe we may see Gold lose value against Silver for a few years. As I said I cannot 100% confirm that this scenario will play out, but I think it’s something to think about and prepare for. In March 1991 Gold/Silver reached 105, meaning that 1 ounce of Gold could buy you 105 ounces of Silver. In August 2011 Gold/Silver hit 30, meaning 1 ounce of Gold could buy you 30 ounces of Silver. In my opinion when Gold/Silver hit 126 in March 2020 that was the best place to convert Gold to Silver (many people may choose not to do that). There’s strong resistance on Gold/Silver chart around 80-83, and I believe if we fail to hold at around 80-83 then Gold will fall hard against Silver. My initial plan is to convert Gold to Silver around 80-83, but if I see a bullish pattern forming around that level then I might wait to find a better opportunity to convert my Gold to Silver. On the other hand the formation of the rising wedge seems to be at the early stages of its developments which initially might lead to higher Gold/Silver before correcting. As I said 80-83 resistance level is very important, and if we manage to form bullish patterns around those areas then higher Gold/Silver will definitely be expected.
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