Gold Poised for Near-Term Gains as Silver Lags Behind

Metals Focus Senior Consultant Harshal Barot expects gold to outperform silver in the near term, but believes silver will gain momentum once gold reaches its highs and potentially surpass gold over a two- to three-year period.

From a short-term perspective, Barot thinks silver may underperform over the next couple of quarters due to the current factors supporting precious metals being more favorable for gold.

Indian silver demand remains weak, partly because strong imports earlier in the year have left fabricators and bullion dealers with sufficient stocks, despite import restrictions on silver.

However, Barot sees $5,000 an ounce as the next hurdle for gold prices, which could be pushed even higher by higher import duties and rupee depreciation.