Can silver continue to outperform gold? In the opinion of strategists at ANZ Bank, any short covering could provide another opportunity for silver to fare better than gold.

Gold’s weaker backdrop does not bode well

“Physical demand for silver is picking up, as the major consuming markets in India and China import more. Industrial demand for silver is holding up well from the solar sector, while jewellery demand is also gaining attention. That said, silver largely tracks gold and gold’s weaker backdrop doesn’t bode well.”

“Its outperformance against gold could be possible as short positions in silver look stretched. So, any short covering could provide another opportunity for silver to fare better than gold.”