Silver sizzling, but is it overdone?

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Silver sizzling, but is it overdone?
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- Last I wrote, I suggested that silver was just about ready to pop; since then, silver has gone on to outperform gold in a drastic fashion.

Below is a weekly chart of the gold/silver ratio. Note the top last week at around the 90 resistance level, immediately proceeded by this week’s big red candle. My expectation is that the ratio drops farther, for a test of the rising trendline. Note momentum turning down on the stochastic indicator with lower, horizontal support, represented by the yellow rectangle.

I continue to give metals bulls benefit of the doubt. I anticipate - After a sharp two week rise into blue-sky territory above $2200, which saw gold move up $150 during 8 consecutive positive trading sessions, short-term extreme overbought Gold Futures were due for a rest coming into a heavy U.S. data schedule this week. - This week, copper was the driving force in metals as Chinese smelters agreed to joint production cuts.

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