Silver (XAG/USD) stays rangebound and is seen at risk of near-term underperformance to gold, as the Credit Suisse analyst team notes.
Silver to extend its consolidation phase
“Silver extends its lengthy consolidation phase and we see scope for this to extend for quite a while further yet.”
“With a multi-year base completed last year though this is seen as a temporary phase ahead of the core trend eventually turning higher again for a retest of $30.10/72. Beyond here is needed to see a resumption of the uptrend, with resistance then seen next at $35.23/365.”
“Momentum for the Gold/Silver ratio has improved markedly and a base looks to be building. A close above 70.13 though is needed to confirm a base and for XAU/USD to start to see at least some near-term outperformance.”