As gold was looking to gain some lost ground post the release of the Federal Open Market Committee minutes, some analysts are placing their bets elsewhere.
And no, it’s not bitcoin.
Silver has been outperforming gold in October thus far. The gold/silver ratio has fallen from just shy of 77 at the beginning of the month to a good 75 at present.
“Silver looks really good. And it will continue to outperform gold,” said market watcher Todd Horwitz, founder of bubbatrading.com. “I think near-term, we will see .50- silver. The bear market for the metals is over and as equities will sell-off, that money has to go somewhere. We will see higher prices for silver and gold.”
On Wednesday, silver rose 0.3 percent to .13 an ounce, having hit a three-week high in the previous session. Gold had traded mixed earlier on the day after Catalonia’s leader pulled back from making a formal declaration of independence from Spain, sending the euro higher and the dollar down.
“I think gold is going to move higher, the way the action has been since last week’s jobs number, gold has made a very nice move from the bottom,” Horwitz said. “I am looking at ,350-,400 before the year is over.”
This afternoon’s FOMC minutes report contained no big surprises, which did allow for gold prices to erase earlier losses. Some market watchers were worried the FOMC minutes would sound a more hawkish tone. December Comex gold was last up .60 an ounce at ,295.40.