With an abridged trading week last week, the price of silver was unable to gain any significant traction, climbing just 0.6% for the week. Despite the stagnant performance last week, I still see silver prices climbing significantly by the end of the year…
The only real possible driver was the weakening U. S. dollar, yet silver’s modest gains were not commensurate with that opportunity.
Some encouraging gains came mid-week, as market observers focused on the Federal Reserve. It seems their interpretation of the FOMC’s concerns over ‘persistently weak inflation data’ potentially leading to lower inflation expectations for a longer period weighed on the dollar and boosted silver prices.
The U. S. Dollar Index (DXY) shaved off 150 basis points in just four days, pushing silver from $16.85 to $17.13 post-Fed minutes release.
To be sure, seasonal trends and the dollar are likely to be the biggest near-term drivers for this metal. And despite the dollar’s recent sell-off, I think it may be a little early to call the end of its recent counter-trend rally…
How the Price of Silver Is Trending Now
As silver opened for trading on Tuesday, Nov. 21, the precious metal changed hands at $16.90. The DXY was pretty flat, though, moving from just above 94 in morning trading to just below that level for the remainder of the day. That seems to have been enough to help push silver higher. By 10:00 a.m., it had popped to $17, before it retreated back to $16.94 by the 5:00 p.m. close
This post was published at Wall Street Examiner on November 28, 2017.