Silver-futures buying is likely getting tapped-out. These super-leveraged traders have far more room to dump longs and ramp up shorting than keep buying, which is ominous for silver.
Silver was sharply higher this past week, reaching a high of 36.51 and closing at 36.13, up about 9%! We are moving higher in wave 3, as shown on our Weekly Silver Chart.
That silver is leading is a positive sign. With silver’s fresh gains ahead of gold, the gold/silver ratio that topped out recently at 107.66 has now fallen to 92.
Gold dropped in total 10.8%. But silver fell only 6%... Both patterns are ultimately bullish, but we await a breakout over $3,500 for gold and above $36 for silver.
