Silver Update: Analyst Sees Short-Term Pullback Before Acceleration

Technical analyst Clive Maund charts silver's progress in comparison to gold's following recent world events.

Silver's recent rally looks diminutive and stunted compared to gold's, but that's normal at this early stage of a new bull market, when silver typically underperforms gold due to investors being risk-averse and silver being perceived as more risky and volatile than gold.

Nevertheless, as we can see on its latest 6-month chart, silver did manage to break out of its reactive downtrend in force from early September. Last week, at the time Iran lobbed missiles at U.S. bases in Iraq, it had a go at breaking above its late September highs. But it was not up to the task and fell back, putting in a reversal candle on big volume, which suggests that it probably has further to fall short term perhaps back to the upper boundary of the downtrend channel shown. But with the overall tenor of this chart positive, it should then turn higher again.