Silver to outperform Gold on improved global economy, says Bhavik Patel

Silver has risen twice as sharply as gold and so as a result, the gold/silver ratio has dropped to 76, its lowest level since the beginning of the month

Silver markets continue to see a certain amount of resilience
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Silver markets continue to see a certain amount of resilience

Bhavik Patel Mumbai
Gold prices reversed losses and rallied as the focus has shifted to the US fiscal stimulus progress, more lockdowns, and the last Federal Reserve meeting of the year. The bullion has resistance at $1875 and it needs to break that level to gain ground. The metal has been unable tp breach this level since November. US 10-year bond real yields are back below -1.0 per cent, giving boost to precious metals. This dip in real yields is being driven by rising inflation expectations, leading to higher nominal yields.

There has been some progress on the US fiscal stimulus front as Congress continued negotiations. We believe gold has legs till $1875 and needs strong to break level of $1900. Currently,

First Published: Dec 17 2020 | 07:12 AM IST

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