After gold’s monster rally last week to price levels not seen since 2013, silver climbed up near the $15.40/ozmark. Silver bulls have been patiently waiting for a run-up to highs of $50 an ounce, last seen in 2011.
“I expected a rally in silver,” Hug noted. “I thought silver would have had at least enough juice to go up to $16.”
Still, there might be hope for silver bulls – Hug said that if the gold rally doesn’t lose its momentum, a rally would be inevitable.
“I still think if this gold rally is real and gold can get over $1,425, given the small amount of resistance levels above that level, eventually silver is going to catch it,” he said.
“If it does, it’s going to be up [$1 to $3] within the space of three to four trading days.” It is only a matter of time, he said.
July Comex silver prices were last down $0.120 at $15.255 an ounce, while August Comex gold prices fell by $7.1 to $1,408.3.
The iShares Silver Trust (SLV) fell $0.04 (-0.28%) in after-hours trading Thursday. Year-to-date, SLV has declined -10.69%, versus a 9.67% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of TheStreet.