Fawad Razaqzada | Jan 26, 2021 01:10AM ET
Following last week’s big sell-off, gold and silver have both managed to cling on to their respective key support levels as investors weigh conflicting macro factors. With the recent rebound in bond yields, the outlook on the metals has become a little uncertain, but I am still of the view that both will rise further over time. Precious metals should continue to receive tailwind support from the ongoing flood of cheap central bank money.
Out of the two metals, I am more bullish on silver than gold:
So this industrial metal should also perform well in the long-term.
From a technical point of view, I am encouraged to see some positive signs for both precious metals.
Gold has managed to hold its own above the still-rising 200-day moving average – but needs to show further strength to signal demand is strong:
Silver, meanwhile, has managed to hold above the breakout area of $25ish:
However, if the metals were to break their respective long-term bullish trend lines, as shown on the charts, then at that point I will have to drop my near-term bullish view on the metals.
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