Price of Silver Is Rallying and Could Soar Another 19% in 2018
Peter KrauthThe price of silver's rise from its mid-December ashes has been nothing short of spectacular.
Thanks to that rally, the silver price finished 2017 ahead 6.7%. If you consider its 2016 gain of 14.3%, then silver appears to be joining gold in its return to secular bull market action.
More recently, in just the past two-and-a-half weeks, the price of silver has soared an impressive 8.3%.
This ended a year that challenged silver bulls' patience, but those with the fortitude to hang in have been handsomely rewarded.
Ever since silver started correcting from over $18 in early September, the $17.50 level has acted as overhead resistance.
On Jan. 2, silver busted through the $17 level and appears intent on remaining above it.
Given how easily the $16 and $17 psychological thresholds were taken out, I'm expecting more bullish action in this seasonally strong time of year…
How the Price of Silver Is Trending in 2018
On Wednesday, Dec. 27, a small relief rally for the U.S. dollar pulled the DXY slightly higher in the afternoon. So silver sold off slightly and closed at $16.66. Still, the metal managed to gain $0.11 per ounce in New York trading.
Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he's only seen twice in 20 years. He calls it the "Halley's Comet of investing" – and it could lead to windfall profits. Read more…
Thursday, Dec. 28, would see continued strength. At 8:00 a.m., the DXY was at 92.72 and closed at 92.64. That helped fuel silver gains, taking the metal from $16.69 at 8:00 a.m. to end the day at $16.84.
Here are the DXY's moves over the past five trading days:
On the last trading day of 2017, silver made a valiant move higher to touch $17.03. But that was only on an intraday basis around 1:00 p.m. after starting out at $16.82. It's little wonder, as the DXY opened lower at 92.28 and sank to 92.11 at 12:45 p.m., which was when silver spiked above $17. But a relief rally in the dollar pulled the DXY back up to 92.3 by 4:00 p.m., and silver ended at $16.91.
The next full trading day was Tuesday, Jan. 2. Already, in late Monday evening trading, silver prices were higher. Then on Tuesday, they opened at $17.06 and climbed steadily to $17.16 by late afternoon as the DXY was trading down near 91.80.
Now that we know how silver prices are trending now, here's how high I see the precious metal heading in 2018…