Gold and silver have extended their recovery, now trading firmly above their 50-day moving averages. From a technical perspective, this signals a shift back toward constructive momentum after the recent pullback. Price action is stabilising and rebuilding in a more orderly manner, suggesting accumulation rather than short-covering.
Equity markets, however, remain unsettled particularly within technology.
Australian-founded Atlassian, listed on the NASDAQ Composite, has retraced dramatically and is now trading at roughly a third of its level from a year ago. Once viewed as a flagship high-growth software story, the repricing reflects a broader market reassessment of valuation multiples across the tech sector. As earnings durability and cash flow discipline take priority over expansion narratives, previously elevated stocks are adjusting.
The concentration of technology within the S&P 500 leaves the broader market sensitive to these drawdowns. When leadership stocks weaken, index stability becomes more fragile. Against this backdrop, bullion’s recovery appears increasingly deliberate.
The Gold-Silver Ratio (GSR) provides additional perspective. The ratio measures how many ounces of silver are required to purchase one ounce of gold. Elevated readings suggest silver is relatively undervalued compared to gold; compressed readings indicate relative outperformance.
Historically, the ratio has often traded between 40:1 and 60:1 during balanced market conditions. Today’s level remains above long-term historical averages. For reference, geological estimates place silver’s abundance in the Earth’s crust at roughly 17-20 times that of gold. While market pricing is driven by far more than geological supply, sustained bullion cycles have historically seen the ratio compress, often rapidly as silver accelerates after gold establishes direction.
Separately, affordability pressures continue to build within Australia. Median house prices across major cities now exceed the borrowing capacity of median single-income earners. Property values have outpaced wage growth for years, and higher interest rates have further constrained access. The result is a structural affordability gap rather than a short-term cycle.
In environments where equity valuations reset and property accessibility deteriorates, capital preservation assets tend to regain strategic relevance. Gold traditionally occupies that role. Silver often amplifies the move once momentum builds.
What is the GSR (Gold to Silver Ratio)
The Gold-Silver Ratio has functioned as a monetary reference point for centuries. Under historical bimetallic standards it was often fixed near 15:1 or 16:1. In modern free markets, the ratio has been far more volatile, compressing near 15:1 during the 1980 metals peak and expanding above 100:1 during periods of extreme financial stress.
For investors, the GSR is best viewed as a relative value indicator. Elevated levels can signal potential outperformance from silver in a sustained precious metals cycle, while lower levels may indicate silver has already run ahead of gold.
Technical Indicators – Weekly Projections
Daily technical indicators put forward a sell projection, leading into weekly projection of Strong Buy
Weekly technical indicators chart.
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Overbought |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | High Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
The Gold-Silver Ratio has functioned as a monetary reference point for centuries. Under historical bimetallic standards it was often fixed near 15:1 or 16:1. In modern free markets, the ratio has been far more volatile, compressing near 15:1 during the 1980 metals peak and expanding above 100:1 during periods of extreme financial stress.
For investors, the GSR is best viewed as a relative value indicator. Elevated levels can signal potential outperformance from silver in a sustained precious metals cycle, while lower levels may indicate silver has already run ahead of gold.
