Upon evaluating the movements of the gold-silver ratio () in a daily chart, since both the precious metals started the bullish voyage after testing their lows – at $2,970.67 while the XAU/XAG was at 105.44, and the were at $29.240 on April 7, 2025.
The second important date to note is Oct. 20, 2025, when the gold futures tested the first record peak at $4,98.29; and silver futures tested a high on this date at $51.543 while the XAU/XAG was at 82.89 and moved upward on Oct.21, 2025, when the gold futures experienced a single-day fall of more than 6.86%.
Thirdly, gold futures started an uptrend on October 28 after testing the low at $3,896, and silver futures at $46.986, before testing high at $53.770, while the XAU/XAG was at 83.58.
Fourth important date to note is Nov. 21, 2025, when the XAU/XAG tested a high at 82.89 before the advent of a steep slide that continued to push this up to Dec. 29, 2025, to test the low at 54.23, when the gold futures tested the next peak at $4545.54, while the silver futures tested a peak at $79.587.
The fifth important date to note is Jan.1, 2026, when the XAU/XAG tested a low at 43.32 while the gold futures tested a record peak at $5,626.47, and the silver futures too were testing a record peak at $121.746 on Jan. 29, 2026.
I find that the XAU/XAG has a perfect inverse correlation with gold and futures, and that provides a definite directional clue to precious metal futures.
Finally, I conclude that after testing the lows on Jan.26, 2026, XAU/XAG, indicating a strong reversal to continue, and that will definitely keep the selling pressure in gold and silver futures.
Undoubtedly, if the XAU/XAG finds a breakout above the immediate resistance at 48.81 and sustains, it could hit the next resistance at 54.23, where a breakout will move to test the next resistance at 59.93 up to Feb.27, 2026.
If the XAU/XAG achieves the targeted levels next month, up to 59.83, gold futures could experience a low at $4,398, and silver futures could test the lows at $78.885.
Disclaimer: Readers are advised to take any position in gold and silver futures at their own risk, as this analysis is based only on observations.
