Silver continues to outperform and remains the top pick for TD Securities due to its positioning levels. “Silver continues to outperform and remains our precious metal favorite as a clean positioning slate, strong investment flows and robust industrial demand combine for strong performance at a time when the microstructure creates a disincentive for silver bullion traders to sell,” TD Securities strategists write.

On the other hand, positioning in gold is “increasingly bloated” and investors should be ready for modest consolidation. “The bulls are vulnerable to a modest consolidation in the macro drivers that have supported gold length over the past few months. As positioning has grown to increasingly bloated levels, leaving little dry-powder remaining for the bulls, the frenzied retail speculation has further increased the risks of a positioning squeeze for gold bugs,” the strategists add.