Gold and Silver divergence.

Discussion in 'Metal Futures' started by DrPepper, Aug 20, 2010.

  1. 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.
     
  2. Roark

    Roark

    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">
     
  3. 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.
     
  4. Biog

    Biog


    Previous 6 months, gold and silver are 79% correlated.
     
  5. "You shall not crucify mankind upon a cross of gold!"