Silver prices have lost about half of their value since hitting a historic peak in January amid a simultaneous sharp correction in the precious metal market. Not only that, silver has also lost more than one-third of its value compared to gold and technical signals show that this metal is approaching levels that could further prolong the weakening momentum.
The plunge of both gold and silver began on January 30, when the market saw expectations that the US Federal Reserve (Fed) would be less likely to cut interest rates than expected.
After that, concerns about increased inflation since the conflict between the US and Iran broke out further strengthened this sentiment, as investors are increasingly preparing for a scenario where the Fed may have to raise interest rates this year.
Silver is under stronger pressure than gold, partly because this is both a precious metal and an industrial metal, making the price more sensitive to changes in investors' risk appetite.
In addition, silver also had a stronger increase than gold in the previous period, so it was under pressure to take profits and adjust more when the trend reversed.
According to data from the London Stock Exchange Group (LSEG), the gold-to-silver ratio is continuing to increase after surpassing the 200-day moving average at 66.76. This is an important technical indicator often used by analysts to determine the long-term trend of the market.
The next goal of this ratio is the 70 mark - an important psychological threshold because the market usually pays special attention to round numbers.
If the gold/silver ratio exceeds and remains stable above the 70 mark, it is highly likely that the market will head towards the peak set on February 6 at 72.74, before moving up to 75.25 - equivalent to about half of the decrease in the gold-silver ratio since April 2025.
In the opposite direction, if silver wants to regain its advantage, this metal needs to first narrow the upward momentum of gold, pulling the gold/silver ratio back down below the 200-day moving average.
After that, the next target will be the bottom area on June 22 at 62.68.
If this ratio continues to fall below the 60.56 mark - corresponding to the midpoint of the fluctuation range in May and June - the upward momentum of silver prices will be significantly strengthened.
