Silver closed at US$16.12 an ounce overnight, its highest point since mid-February, as it begins to support gold prices.

There has been no shortage of excitement around gold in the past couple of months, as prices hit all-time highs in Australia.

But according to analyst Bill Baruch of Kitco, silver is now beginning to support gold prices.

“Silver achieved US$16 for first time since February and it’s finally doing some of the heavy lifting for the precious metal complex,” he said.

“Silver severely lagged gold’s June rally and now that gold is consolidating, it needs silver to keep buyers on board.”

Fellow analyst Todd Howitz backed the view on silver, saying it has further room to move.

“If this breakout can continue then I think we’re on our way to US$17 and then if we can get through there then I think you’re on your way to $20,” Horwitz told Kitco.

“If you look at gold and silver side by side, silver looks like it ran out of business compared to gold but all of a sudden, silver has caught a bid and it looks like it wants to go higher.”

However another analyst, Todd Gordon, told Kitco gold could be in for a correction in the coming months, though he backed the US stock markets to rally.

This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.