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It's been a challenging week for silver investors, given the post-election drop and ongoing weakness in the price of silver.
Here's what I mean...
On Nov. 10, silver prices closed at $18.58. Now the price of silver trades nearly $2 lower at $16.65.
I think what's happened is twofold. The first is that markets, long-term bonds, and the U.S. dollar are all up post-election. That has attracted investors away from precious metals, sending prices lower. The second driver is simply a correction phase for silver prices that is playing itself out.
After peaking at $20.28 in late July, the price of silver has been in a correction/consolidation phase that so far has lasted roughly three-and-a-half months. In that time, silver is down by 22%.
So what does it all mean for this high-potential precious metal? Well, at least one indicator is pointing to a possible near-term bottom. And that could mean markedly higher silver prices in the new year...
How the Price of Silver Is Trending Now
After its precipitous price drop late last week, silver continued to struggle last week.
Silver started out on Monday, Nov. 14, at $17.22, then dropped to $16.71 by 11:00 a.m. It quickly reversed and began clawing back to close at $16.85.
The next two days saw a relatively tight consolidation sideways, with silver prices trading between $16.90 and $17.20.
But by midday Thursday, it had succumbed to a powerful U.S. dollar. By 3:00 p.m. that day, silver was trading at $16.62 and barely closed higher at $16.64.
Then Friday brought further weakness as the U.S. dollar ran to nearly 14-year highs. Silver was trading down to $16.59 by late afternoon.
Silver prices today are up slightly, 0.45%, to $16.63.
Meanwhile, here's how the U.S. dollar was acting last week, as long-term bonds continued to sell off and a December rate hike became all but an outright promise from the Fed's Yellen.
Here's what that means for the price of silver and where we can expect the precious metal to head from here...
Our Newest Price Target for Silver
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.