Short term
Trade view / 23 September 2016 at 10:42 GMT

Trading the gold/silver ratio

Trader / Saxo Capital Markets Pte Ltd
Instrument: XAUXAG
Price target:
Market price:

With the Federal Reserve projecting a shallower hiking cycle, it is possible that we will see a theme of USD liquidation over the coming week.

We should see gold and silver continue to move higher in tandem with the USD liquidation theme.

In silver, we see a symmetrical triangle on the daily charts which suggests further upside once prices have broken out.

In gold, a falling wedge on the daily chart after an uptrend suggests further upside once prices have broken out.

We can trade the higher gold and silver prices through the gold/silver ratio, which is on a downtrend since March 2016...

Slide 1

Slide 2

Slide 3

Slide 4

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank


sell XAUXAG market (~67.3).

Stop: we base our stop on 2 x ATR*, i.e. 67.3 +2 (1.23) = 69.76

(*ATR = average true range, a measure of the degree of price volatility.)

Target: when the stochastics next exhibit a bullish crossover.

— Edited by Michael McKenna

For more on commodities click here.

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail