Metals Bull Market at Work: Gold Up 3% for the Week as Silver Gains Against Gold

By Ira Epstein

Metals markets are in the midst of a bull run, according to Ira Epstein, with gold posting a significant advance of 3% for the week while silver continues to gain ground against the yellow metal. That relative shift is measured by the gold/silver ratio — a long-standing benchmark for how many ounces of silver it takes to equal one ounce of gold — and silver outperforming gold pushes the ratio lower, making it one of the most closely watched gauges of relative strength between the two metals.

Beyond the metals complex, Epstein points to comments from Treasury Secretary Scott Besant as a driving force in broader financial markets. The remarks coincided with a reversal in stock market trends and a rise in yields.

Geopolitical tensions also factor into Epstein's assessment, with particular attention on China and the Strait of Hormuz. The strait, a narrow passage between Iran and Oman through which roughly a fifth of the world's oil passes, is among the most closely watched shipping chokepoints in global markets, which is why developments there register beyond the energy complex.

On the economic calendar, Epstein anticipates the release of the U.S. preliminary August manufacturing and services sector PMI data. The preliminary — or "flash" — PMI readings arrive ahead of each month's final figures and serve as an early gauge of business activity, with 50 marking the line between expansion and contraction.

While gold and silver remain on an upward trajectory, Epstein observes that the copper market tells a different story, remaining stagnant and oversold. The split underscores how differently parts of the metals complex can behave: copper's demand is overwhelmingly industrial — wiring, plumbing, electronics, and construction — so it is often read as a gauge of manufacturing and building activity rather than tracked for the same reasons as the precious metals. In technical terms, "oversold" describes a market whose momentum indicators show an extended stretch of selling, a condition traders monitor as a descriptive signal rather than a guaranteed turning point.

About the Author: Ira Epstein

Ira Epstein — IraEpstein.com, LINN & Associates

Over the past 35 years, Ira Epstein has developed a reputation for providing clients with easy-to-use technology and teaching good old-fashioned trading know-how. A number of the firm's brokers have more than 30 years of trading experience, and no matter how technology changes the methods of entering orders, there is no replacement for having "been there and done that before." It is the blend of services — education, market information, and trading platforms — that brings things together and provides solutions.

Ira began in the futures markets in 1969, working his way up from the ground as a "floor runner" and culminating in his becoming a Floor Trader. In the mid-1970s, he made a career shift within the industry to develop both retail- and commercial-based clientele. His customer base grew to the point that in 1984 he founded "Ira Epstein & Company," a trading firm specializing in retail, commercial, and self-directed discount futures trading.

Along the way, Epstein became a leader in trading technology out of necessity, driven by increased small-lot trade volume. He was among the first to embrace the Internet, which has dramatically changed both the way information is delivered and how trading takes place today. One of the ways Epstein and his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos," which can be viewed on the firm's website, through Market Center, Linn-IraChart Software, and on YouTube.