But, based on last week’s price action, gold’s crazy cousin may have slipped into party mode…
Check out silver bouncing higher relative to gold:
The entire precious metals space – and interested bystanders worldwide – have eagerly awaited such a display of relative strength.
Why?
Silver outperforming gold indicates a burgeoning risk appetite for these neglected rocks. Precious metals of all colors and densities benefit from increased flows into silver-related assets.
It’s a risk-on gauge for precious metals. Now, the question turns to whether gold will complement silver’s advance.
Both metals were higher Tuesday, as gold nears a critical shelf of former highs at approximately 2,016:
That’s our level.
The path of least resistance points toward the former all-time highs if and when gold breaks above the October peak.
It remains a sideways mess until a decisive upside resolution.
Yes, goldbugs have plenty to celebrate. It’s not every day silver graces the scene like this.
But the charts remind us that precious metals still contend with overwhelming supply.
As long as that’s the case, the next rip-roaring rally is on hold.
