Technicals | Mar 19 2010
By Rudi Filapek-Vandyck
It has been a recurring theme this past week: commentators on precious metals believe silver's price prospects are better than gold's.
This morning technical analysts at Barclays Capital have weighed in on the argument.
While gold is finding it tough to break out of its trading range, which seems to be capped by resistance at US$1135/oz, the analysts maintain the precious metal is ultimately on the road to US$1300/oz and then to US$1500/oz.
But for now, resistance at US$1135 remains a tough nut to crack for gold.
The chartists agree with commentators elsewhere that silver's prospects appear healthier. However, similar to the struggles in the gold market, the chartists believe silver will struggle in the short term too.
On Barclay's price charts, silver is trading in between the Head and Shoulders neckline at US$17.56/65 and cloud and trendline support at US$17.06/16.66. As long as the bottom doesn't give in, the upside potential should remain intact.
Conclusion: yes, silver is looking better on technical analysis, but don't expect it to move decidedly higher in the short term. Gold is seen side-ways trading for a while yet.
