During the last few sessions, my intraday gold/silver ratio work has been warning me that the recent leadership role of gold's upside acceleration might undergo a change. No, not that gold will reverse, but more than likely silver will begin to outperform gold again on the upside.
Again? Yes, remember that for 9-month period between July 2010 and April 2011, silver prices rocketed while gold prices climbed at a much more subdued rate of change.
My near- and intermediate-term ratio work is suggesting that the May-Aug gold leadership role is at or nearing completion, and that in the hours and days directly ahead, silver prices -- and the iShares Silver Trust (SLV) -- will begin to "out-accelerate" gold -- and SPDR Gold Shares (GLD) -- on the upside and show increasing resilience during periods of weakness.
The fact that silver prices hurdled their Apr-Aug resistance line this morning supports the unfolding leadership change.