Gold may exceed the silver, the lifting of the relationship between the two metals up to 20 percent, according to the technical analysis of Societe Generale SA.
The graph shows the relationship of gold to silver was steady after falling as low as 46.6 last week, near a line of channel support from two years and minimum of 2008 and 1999. The second graph shows the proportion may rise to between about 56 and 58, which are levels of falling back in June that was highlighted in the analysis of Fibonacci call.
"The proportion of gold and silver reached an important support for 47.5/46," said Stephanie Aymerich, cross-products analyst at Societe Generale technicians in London. "Gold will outperform silver to 56/58."
An ounce of gold bought only 46.6 ounces of silver in London on 7 December, the lowest in almost four years. Precious metals gain this year in the demand for wealth protection and an alternative to currencies. Some investors are betting that the money can benefit from economic recovery of 2010 pushed the metal to pass 70 percent, gold by beating 26 percent profit. Silver is used in industry than gold.
The relationship between the relative strength index of 14 days last month bounced back from two years the trend line and the decline in support has been "bullish divergences publishing," said Aymerich. The index fell to 14.7 on 8 November and was at 36.66 on December 10. Some analysts believe that a level of 30 as an indication of possible winnings.
Gold for immediate delivery reached a record $ 1431.25 an ounce on 07 December and was trading at $ 1,386 at the end of last week. Silver last week rose to a 30 years high of $ 30.7025 per ounce and closed at $ 28.6712. The ratio was at 48.3054 on December 10.
In technical analysis, investors and analysts charts on trading patterns and prices to forecast changes in the security, commodity, currency or index. Fibonacci analysis is based on the theory that prices tend to increase or decrease in certain percentages after reaching a high or low.
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