Silver prices have enjoyed a nice rally in the early going of 2015, reaching up as high as $18.50 per ounce. The recent thrust higher likely has to do with European concerns and tension around the Swiss National Bank situation and the ECB bond buying program, but either way, price has moved higher. It’s also worth noting that the rally has landed silver right in thick of heavy price resistance.
This will either stop the Silver rally in its tracks and trigger a selloff, or Silver will consolidate and breakout higher. This is the first major rally and test since I wrote “Is Silver Targeting $14? The Script Is Playing Out” on September 3.
Silver has shown strength in the face of a stronger US Dollar which is a positive. And should the Dollar pullback, it could turn into a tailwind. However, the precious metals have been especially tricky here as the world grows weary of deflation. What happens in and around this Silver technical resistance area will determine the next move for the shiny metal.
Silver Price Chart
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
