"Great audio by Eoin on Friday regarding gold and gold/Dow ratio. My question is about silver. In September it took a "cold shower", like we used to say here, and dropped below its 200 ma. Gold found support around that area and seems to be basing and stretching muscles and this process can take few more weeks. Regarding silver: do you think it will follow gold? Or could they decouple? Did history see a rally in one of the PMs but a failure on the others? Apparently the technical position of silver is not too strong to follow its cousin so, what should we see in order to be more confident on silver? Thank you very much for your thoughts and welcome back."

David Fuller's view Agreed on Eoin's Audio; it is good to be back, and thanks for a question certain to be of interest to many subscribers.

I have often described silver as high-beta gold. When deleveraging results in contagion selling across many assets, it is normal for silver and other PMs to underperform gold. This is unlikely to change until gold is clearly leading the next major advance to the upside.

Fullermoney likes gold near its rising MA but the last significant development on its chart was the upward acceleration which caused it to become as overextended as we have seen previously during this secular uptrend. Consequently, there is a good chance that we will see some further support building before the next bull-run occurs.