As usual, many of the observations regarding gold set out in the parallel gold market update apply equally to silver, so they will not be repeated here.
On silver's 6-month chart, probably the most important point to note is that following gold's failed attempt to break above the key US$2100 level early in December, silver has dropped away, whereas gold has broadly moved sideways, marking out a potential top area.
This shows relative weakness on the part of silver, and on the chart, we can see that it is already dropping away again beneath the trendline, with its moving averages rolling over into a bearish alignment. So if gold breaks down from its Head-and-Shoulders top pattern as expected, then silver is likely to drop at least to the next significant support level in roughly the US$20 - US$21 area.
The longer-term 2-year chart gives us more perspective, and on it, we see that silver has essentially been stuck in a trading range for over a year — since late 2022.
If gold breaks down from the Head-and-Shoulders top that we looked at in the gold market update and drops away, then we can expect silver to drop at the same time, at least to the support level in the US$21 area.
The long-term outlook for gold and especially silver remains most favorable.
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