Gold and silver usually trade in similar patterns. However, this week, gold keeps making new highs whereas silver just made a lower high and appears to be rolling over. I am trying to decide whether silver is going to drag the price of gold down or if gold is going to pull the price of silver up. I am curious if anyone has a way of deciding, when 2 related commodities diverge, which one has a stronger influence on the price of the other. Thanks.
Don't decide; just put on a pair trade. In any event, I don't see much of a divergence: <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2929589">
There is a little bit when you zoom into last 10 weeks or so. That's how the OP see it. But overall big picture it is still correlated.