SEE MORE: Analysis – Silver ETFs Are Outshining Gold
Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated silver cheaper for foreign buyers and a better store of value for U.S. investors.
“Silver looks a bit more interesting than gold at this point. I think a break out this triangle would be pretty bullish and open the door for new recovery highs. During the pullback, there was a nice reset of daily momentum. Both the 14-day RSI and MACD had moved into extreme overbought territory following the parabolic move in June and July,” adds See It Market.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.