Posted on May 29, 2020

Money Metals Exchange

Precious metals markets are trading mixed this week. Despite a significant drop in the U.S. Dollar Index which might have served as a catalyst for a big breakout week for gold and silver – futures traders had other ideas and kept metals prices relatively capped through Thursday. Today, however, we’re seeing a nice month-end rally in gold and silver prices.

For the week, spot gold is essentially flat to trade at $1,743 an ounce. Silver, meanwhile, sports a weekly gain of 3.7% to come in at $17.93 per ounce.

Silver’s outperformance brings the gold:silver ratio back below 100 after reaching historically high levels from the panicked market conditions of March. Although the ratio itself doesn’t trade on any exchange, some metals traders do try to profit off trends in the ratio by going long one metal and short the other. Long-term bullion investors also use the ratio as a measure of relative value when deciding whether to favor gold or silver in new purchases.
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