Silver Price Forecast:
- Silver prices have been relatively tame over the past few weeks, even with many other commodities like lumber, copper or tin embarking on outsized rallies.
- Gold prices have actually been bearish, even with a weak US Dollar, much to the dismay of metals traders; but Silver prices have been hanging on to support, keeping the door open for continued bullish behavior.
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It was almost a month ago that I began looking at silver, presenting the potential for a bullish breakout. That breakout showed up soon after, and price action in Silver pushed up to a fresh seven-year-high in the following week, temporarily touching above the 30 level before scaling back.
Since then, buyers have largely helped to hold support. Silver prices have not kept up with the broader commodity space that’s seen some rather outlandish moves in areas like Copper, Lumber or Tin. But – Silver is also holding up considerably better than Gold, even with a weak US Dollar, as the Gold-Silver ratio continues to plummet.
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For Silver prices – the big question is whether buyers are lining up to pose another breakout. And, if so, can they finally substantiate a significant move above the psychological level at 30, which has already helped to create two reversals over the past seven months. Will the third time be the charm at the psychologically important 30 handle?
To learn more about psychological levels and how they can function as support/resistance, check out DailyFX Education
Silver Daily Price Chart
Chart prepared by James Stanley; Silver on Tradingview
--- Written by James Stanley, Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX