The bullish arguments relating to silver are this week almost identical to those set out for gold in the Gold Market update, to which readers are referred, and it only remains to highlight the differences.
Gold has been outperforming silver all year to date, and although this could change anytime, there is no sign of it yet. A recent example is the fact that gold has broken clear out of the restraining “Distribution Dome” shown on its chart, whereas silver has only managed a marginal breakout above its dome pattern. Also, late last week, gold got close to its July high, which silver did not by a margin. The stronger look of gold at this time is also reflected in its moving averages, which are a little more bullishly aligned than is the case with silver - silver recently dropped below its 200 and 300-day moving averages which gold did not.
The differences just outlined are trivial, however, when one steps back and considers the big picture, which is that both charts are looking very bullish - and both metals are set to soar if the dollar goes ahead and does what it has been threatening to do for some time, which is break clear below 80 on its index, an event that is expected to trigger a tidal wave of dollar liquidation. If this happens as expected, then silver, like gold, is expected to quickly take out its highs of last year and to continue higher in a vigorous uptrend.
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