Gold is on the rise, but silver could turn ‘parabolic’ as precious metals ratio shrinks


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Citi analyst Aakash Doshi came to a similar conclusion in a note last week that investor FOMO could easily take silver prices to between US $ 25 and US $ 30.

“Positive momentum could quickly take trading to US $ 25-30 / oz over the next 6-12 months, depending on our bullish scenario,” Doshi wrote. “Given the richness of the silver bias and the disproportionate movement of silver relative to implied gold, it is clear that investors are adding silver structures from above both outright and perhaps against the gold.

A move to $ 30 / oz. may be likely, said Blue Line Futures chairman and trader Bill Baruch, but not before the rally calms down.

On a technical basis, silver reached resistance just above US $ 26.20 late Monday before falling back to US $ 24.56, where it traded at 4:35 PM EST on Tuesday. Baruch expects the pullback to bring silver back to around US $ 21, its 2016 high, before the precious metal rebounds again.

“It would be constructive and lay the groundwork for a move to $ 30 early next year,” Baruch said.


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