Will Silver Follow Gold Higher?
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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Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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