It's quite crazy what we've just observed on the charts. We're witnessing a true lesson in correlation between gold ($XAU ) and silver ($XAG ).
📉 Gold takes the hit, silver collapses
As gold flirted with $5,000 before correcting to $4,480, it maintains a solid structure. But for silver, it's a different story: a brutal crash to $68, a drop of 25% in just a few days.
📊 The Gold/Silver Ratio: The Verdict
The ratio stabilizes around 66, confirming a historical rule:
Gold leads the dance: It dictates the market direction.
Silver amplifies everything: When Gold coughs, Silver catches pneumonia. Every rally of Gold is anticipated, but every crash of Silver is multiplied.
Currently, industrial demand is missing in action. It's fear (market sentiment) that drives prices.
🎯 Key levels to watch (NFA)
Keep your charts open on these price areas:
Gold ($XAU): Critical support at $4,400.
Silver ($XAG): Psychological zone at $60.
One of these supports will likely hold, while the other seems much more fragile.
The final word: Don't let short-term volatility blind you. If you zoom out, the macro structure remains bullish in the long term. History does not change.
