Macro Monday Tactical Book: Short gold vs long silver — #SaxoStrats
Gold has vastly outperformed silver over the past five years as can be seen by the ratio in the weekly chart. We're getting close to potential resistance levels and reversal in gold vs. silver.
We're therefore shorting gold and buying silver on spot for an entry level of 80.4908, risking 100 basis points with a stop at 84.20 and a target of 76.08. This trade could take one to three quarters to play out, yet, given over-extension, some drastic mean reversion could occur in the next two to four months.
Management and risk description
Entry: Entry ratio of 80.4908
Short gold at 1312