Technical analysis by QuantumXTrading about Symbol PAXG on 6/5/2024

The spread between XAU (gold) and XAG (silver) provides insight into the relative performance of these two precious metals. Over the past few months, the XAU/XAG ratio has shown an upward trend, indicating gold's outperformance relative to silver. Technical indicators such as the 50-day and 200-day moving averages confirm this bullish trend, with the spread consistently trading above these averages. However, recent RSI readings above 70 suggest overbought conditions, hinting at a potential short-term pullback. Support for the spread lies near the 80 level, while resistance is around 90. Watch for a break below the support as a signal for silver to start outperforming gold.