Strategic trade
Trade view / 09 February 2018 at 2:51 GMT

Macro Monday Strategic Book: Short gold vs long silver — #SaxoStrats

Global Macro Strategist / Saxo Bank Group - Singapore Hub
Instrument: XAUXAG
Price target: 72.85
Market price: 80.4908
Gold has vastly outperformed silver over the last five years, as can be seen by the ratio in the weekly chart below. We are getting close to potential resistance levels and reversal in gold vs silver. 

Management and risk description

We are risking 150 basis points. 

Key risk here could be the momentum in the outperformance of silver over gold in the current cycle (that is, since 2008). So far in 2018, price action and long positioning has been much more beneficial to gold than to silver.


Entry ratio of 80.4908
Short gold at 1312
Long silver at 16.30  

Stop: 88.54

Target 1: 72.85
Target 2: 70.20

Time horizon: Six to 18 months.

— Edited by Robert Ryan and Clare MacCarthy

Non-independent investment research disclaimer applies. Read more

A compiled overview of Trade Views provided on is found here
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Aren't you risking at lot more than 150 basis point with that stop?


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