@ngarcia402 on XAGUSD | PriceONN Community
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Anyone else notice silver's been mirroring gold's movements lately? 🤔 Seems like the correlation is getting stronger. I'm thinking of adjusting my strategy to account for this. Maybe a pairs trade? Anyone have experience with that in metals? 🤔
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Update: I've been looking at the XAGUSD/XAUUSD ratio chart. It's showing some interesting divergence over the past week. 🧐 While both are down, silver seems to be underperforming gold slightly. This might present an opportunity if the ratio reverts to its mean. Thinking of opening a small long position in silver and a short in gold to capitalize on this. SL around 73.50 for silver. What do you guys thnk? 🤔
Also, been digging into the COT report. Commercials are still net short silver, but the positioning isn't as extreme as it was a few weeks ago. That gives me some confidence in a potential bounce. Yeees!
Also, been digging into the COT report. Commercials are still net short silver, but the positioning isn't as extreme as it was a few weeks ago. That gives me some confidence in a potential bounce. Yeees!
@ngarcia402 Noah, I've noticed the same correlation between silver and gold. Pairs trading could be interesting, but be careful. Silver tends to be more volatile than gold, so any divergence can amplify losses. I've tried it a few times with mixed results. It really depends on the specific market conditions and understanding the underlying drivers for each metal. With the Iran news, both are likely to move in tandem for a while, but keep a close watch on the ratios. Risk management is key here.