New Delhi, Sept. 9 -- Gold prices above $4,400 appear expensive, while silver around $66 remains relatively cheap, according to Monarch PMS, which sees a clear divergence in the valuation of the two precious metals.

The brokerage's valuation framework suggests that gold has already moved back towards its fair-value zone after a sharp speculative overshoot earlier this year. Silver, meanwhile, has corrected its relative excess against gold and is now trading below Monarch PMS' estimated fair value.

Monarch PMS has modelled a fair-value range of $3,248 to $4,595 an ounce for gold, with a midpoint of $3,922. As of September 8, gold was trading at around $4,355 an ounce, which was about 8% above the model's midpoint but still roughly 8% bel...