Will Silver Follow Gold Higher?

OANDA:XAGUSD   Silver / U.S. Dollar
A few weeks ago, we discussed the emerging breakout in gold. Now’s a good time to look at its fast-moving cousin: silver .

This weekly chart shows XAGUSD’s consolidation pattern above roughly $21.36 since late 2020. That’s a potentially important level because it was a high at various times for more than a decade.

Next is the downward-sloping trendline that prices crossed last week. That could be important because it rallied after breaking similar patterns in 2019 and 2020.

Third, consider the historical relationship with gold . Silver typically underperforms over the longer run, but then plays catch-up once the yellow metal starts moving (as shown by our Smart Relative Strength custom script).

Finally, the macro environment could be supportive. Precious metals were already viewed as inflation hedges and safety plays. If the geopolitical situation causes the Federal Reserve to slow rate hikes that could also make investors more interested in gold and, by extension, silver .

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