Bloomberg analysts: The prices of gold and silver reaching new highs indicate that risky assets may face a lose-lose situation.

BlockBeatNews

BlockBeats News, on May 21, Bloomberg Industry Research Senior Commodity Strategist Mike McGlone stated that the gold-silver ratio typically peaks when The Federal Reserve (FED) ends its easing policy—on May 20, the gold-silver ratio reached 100 times, approaching the highest historical quarterly closing level (113 times in Q1 2020). Unlike previous peak times, the current situation lacks the key element of FED easing, which may indicate that risk assets will face a lose-lose scenario. The current gold-silver ratio (around 100 times) has limited predictive significance for economic trends—if the gold-silver ratio of 100 times reached on May 20 is still above 91.5 times at the end of 2025, it will set a record for the highest year-end ratio, which typically indicates an unfavorable global economic outlook. The ratio peaked during the U.S. economic recessions of 1990-91 and 2020, but this time lacks a key prerequisite, namely—that the FED’s easing policy has not yet bottomed out.

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