Gold 
“Silver prices have been trending lower since early May. The weakness in silver prices has been outpacing that of gold, with the gold:silver ratio rising over the past couple of months. On a monthly average basis, the ratio stood at 85.1 in June, which is at the higher end of its historical range. While the ratio itself does not guide the direction of metals prices, a higher ratio suggests that silver is relatively undervalued compared to gold, with which silver shares an extremely high correlation. The long term (1970 to 2022) correlation between the prices of the two metals stands at 70%, with various periods when the correlation has been higher.
Over the next few months, silver prices have the potential to decline further. There is healthy support for silver prices at the $20.90 level. If this level is broken prices could slide toward $20. The healthier than expected economic conditions and the ongoing drive by various countries to install solar power to meet their green energy targets is expected to be supportive of silver fabrication demand and silver prices.
That said, seasonal weakness in prices and the ongoing readjustment to the new expectations of a delayed recession and loosening of monetary policy are expected to have a stronger impact on silver prices, dragging them lower over the next few months.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
