The gold-silver ratio has witnessed a sharp uptrend over the past month, indicating a relative outperformance of gold over silver. The ratio, which had declined to below 45 in January, surged to around 65 in March and was hovering near 64.20 on Friday.
On Friday, the spot gold prices gained 2% to $4,466.38 per ounce, while the US gold futures for April delivery rallied 1.9% to $4,461. Spot silver price rose 3.1% to $70.10 per ounce
The rise in gold-silver ratio marks a significant rebound after the ratio had spiked above 100 in April 2025, before plunging to sub-45 levels in January 2026.
What is Gold-Silver Ratio?
The gold-silver ratio measures the number of ounces of silver required to purchase one ounce of gold. It is calculated by dividing the price of gold by that of silver. A higher ratio signals gold outperforming silver, while a lower ratio indicates stronger performance by silver.
The recent rise in the gold-silver ratio suggests a shift in investor preference toward gold, with analysts expecting this trend to continue in the near term. Market participants anticipate the ratio could climb to 75, implying further relative weakness in silver prices.
Time to shift from silver to gold?
Both gold and silver have retreated from their record highs amid heightened global volatility following the US-Iran war. The geopolitical tensions have fueled inflation concerns due to a spike in crude oil prices, strengthened the US dollar, and reinforced expectations of an interest rate hike by the US Federal Reserve.
Gold prices have declined approximately 16% since the onset of the conflict on February 28.
Ajay Kedia, Director at Kedia Advisory, expects the gold-silver ratio to rise to 75 over the next six months.
“The surge in crude oil prices amid escalating geopolitical tensions is likely to keep inflation elevated and weigh on global growth. This is negative for silver, which has already seen sharp profit booking from recent highs. While the outlook for both precious metals remains bearish, we expect silver to underperform gold,” Kedia said.
He pegged support levels for gold at $3,450–$4,000 per ounce, while silver is likely to find support around $50 per ounce.
Kedia further noted that expectations of a US Federal Reserve rate hike, a stronger US dollar, and ETF outflows are key factors that could continue to pressure silver prices. He recommended that investors consider shifting allocations from silver to gold in the current environment.
Meanwhile, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, highlighted that Comex gold price has remained resilient, while Comex silver price has declined over 27% in March, erasing gains made in January and February.
“A higher gold-silver ratio typically indicates silver underperformance, and vice versa. A ratio near 65 reflects cautious or defensive market sentiment. While gold appears stronger and safer in the current environment, silver may offer better upside potential if the ratio reverses,” Trivedi said.
He added that ongoing geopolitical uncertainties and volatile crude oil prices could keep energy costs elevated, potentially complicating the Federal Reserve’s rate trajectory.
Trivedi expects gold prices to continue outperforming silver in the near term, with key levels for gold seen at $4,000 per ounce as support and $4,600 per ounce as resistance in the short to medium term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
