Gold and Silver divergence.

D

DrPepper

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.
 
Quote from MoreYummy:

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.
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Previous 6 months, gold and silver are 79% correlated.
 
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