Silver has fallen more than twice as much as Gold since October 9, lifting the Gold/Silver ratio to 75.11. ActionForex says changing risk sentiment has been an important factor in the gap, and $50 is the next major test.
Silver has fallen 11.52% since October 9, more than double Gold's 4.74% decline. The gap pushed the Gold/Silver ratio from 68.94 to 75.11, according to ActionForex.
Silver traded around 54.06 on Monday, approximately 55.6% below its late-January record of 121.65. Meanwhile, Gold stood near 4,014.
Risk sentiment is an important factor in the gap
The divergence developed alongside a technology-led equity correction. Nasdaq fell 2.6% on October 22 as investors scrutinized AI infrastructure financing and returns.
Silver's dual role as a precious and industrial metal makes it sensitive to growth expectations and risk appetite, ActionForex says. Yields do not tell the whole story, though: US nominal and real yields declined during parts of the selloff while Silver kept falling.
Gold draws on central-bank demand
Gold benefits from central-bank purchases, a source of investment demand Silver lacks. CME Group economist Erik Norland identified the shift from expected rate cuts toward renewed tightening as a major contributor to the broader precious-metals correction. Higher policy rates raise the opportunity cost of holding non-yielding assets.
Physical-market signals add a cautionary note for Silver. India decided to permit approximately 6,500 metric tons of Silver imports over six months, and reports pointed to sharply lower domestic premiums and subdued demand.
Technical focus turns to 52.53 and $50
Silver broke below its July low of 54.77 last week. The immediate downside projection is 52.53, and a sustained break below it would strengthen the case for losses toward the 49.78–50.00 support region.
Still, four-hour MACD shows tentative bullish divergence, which leaves room for a corrective rebound. The near-term bearish outlook stays intact while 58.60 resistance holds.
This week's calendar could test the picture. The Fed, BoC and RBNZ decide on Wednesday, the ECB follows on Thursday and the BoJ on Friday, alongside major technology earnings.
Source: ActionForex
Trading involves risk.
Risk Disclaimer
