Technical analysis by ProTradeSignals about Symbol PAXG on 3/31/2025

Gold (XAU/USD) currently trading at $3,118 has significantly outpaced Silver (SILVER) at $34.07 since mid-March. This divergence has pushed the Gold/Silver ratio to elevated levels, creating a potential mean-reversion opportunity.Looking at the chart, both metals maintained strong correlation through January-February 2025 before Gold began its dramatic acceleration in March-April. While both assets remain in strong uptrends, Gold's nearly vertical move in April suggests potential overextension relative to its historical relationship with Silver.Trading StrategyConsider a pairs trade setup:SHORT Gold / LONG Silver at current ratioTarget: Reversion to 50-day moving average of Gold/Silver ratioStop: 2% additional expansion of current ratioRisk ManagementKey to this trade is position sizing that equalizes dollar exposure between the two positions. Use reduced leverage as precious metals volatility remains elevated across the complex.XAU XAG #PairsTrading