Silver Futures Index $SILVER (SILVER)

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Silver Takes the Gold
By: Bespoke Investment Group | August 6, 2020

Gold and silver prices were already on a tear heading into this week, but have only seent their gain accelerate this week. With more than a day and a half of trading left in the week, front-month gold futures have rallied, but silver has been the real show stopper gaining 16%!

Taking a look at a one-year chart of silver over the last year, things have really gone parabolic this week as the front-month futures contract is trading more than 40% above its 50-day moving average (DMA) and 62% above its 200-DMA



Were it not for the move in silver, gold's move would be getting all the attention. Prices for gold have also seen a major surge in the last month, surging from under $1,800 to the current level of $2,060 per ounce. While not as extended as silver, gold currently trades 14% above its 50-DMA and 26% above its 200-DMA.



With gold 25.7% above its 200-DMA and silver 62.2% above, the average spread of the two commodities currently stands at 44.3%. In the 40+ year history of the two futures contracts, there have only been a handful of prior periods where the average spread of the two commodities was larger or even above 35% for that matter with the most recent occurring back in early 2011. This recent rally in the two commodities has certainly been one for the ages.



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