Could silver outperform next year?

Gold has had a tremendous year, having added 35% from early January to its new all-time high in October. Perhaps it’s more accurate to say that it had an incredible eight months, rallying from below $2,000 in mid-February to $2,790 at the end of October, for a gain of 40%. But it has struggled since then. Fundamentally, there’s evidence that certain newer, and perhaps more enlightened, central banks (led by the People’s Bank of China) remain strong buyers. But the dollar’s rally since late September hasn’t flattered the gold price, although it now appears to be consolidating quite happily just above $2,600. The Fed’s hawkish rate cut before the holidays has also failed to boost gold’s short-term appeal. It’s possible that gold may get a second bite of the cherry in 2025, particularly if investors sour on equities, and look around for alternatives. But it could be that next year will prove to be silver’s turn in the spotlight. Silver began the year below $24 per ounce. But it came within a few cents of $35 at the end of October for an overall gain of 46%. This was still significantly below its all-time high just shy of $50 from 2011. And since October, silver has lost around 15%. A look at the chart suggests that there could be a head and shoulders developing, which would be completed once silver gets back to $28 or thereabouts. That would also see the daily MACD reset at oversold levels. Busted flush, or opportunity?