18 Dec, 2020 19:00 am

Chart Of The Day: Silver Lining For Precious Metals

Chart Of The Day: Silver Lining For Precious Metals
Commodities Analysis by Fawad Razaqzada covering: XAU/USD, XAG/USD, US Dollar Index Futures, Gold Futures. Read Fawad Razaqzada's latest article on

Silver is looking particularly strong compared to other precious metal, given a falling gold-silver ratio: p As the chart shows, gold has been underperforming silver since March and recently the ratio broke down again from a consolidation phase to ignite fresh flows into silver.If silver manages to clear this hurdle, then this could ignite a fresh rally that could see it take out this year’s high and enter the $30.Anyway, focusing back to the charts, silver’s lengthy consolidation phase has been resolved by its price breaking higher this week: p The breakout has seen the metal take out a number of short-term resistance levels including $25, before running into a bit of resistance amid profit-taking around $26.The dips back to old resistance levels should be supported in my view.

Now outperformance could mean two things: silver rising faster than gold or falling at a slower pace compared to the yellow metal.In the slightly longer-term outlook, gold and silver should continue to receive tailwind support from the ongoing flood of cheap central bank money.

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