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With the price of silver today (Monday, Jan. 23) up another 0.8% to $17.17, the metal is on track for another big week.
As America ushers in a new era with President Donald Trump, the vast sea of unknowns that come with Trump will very likely support silver prices in 2017.
In fact, since bottoming in the last week of December, the silver price is up by 8% in less than a month.
I wouldn't count on those sizable gains keeping up through the year, but I do think the foundation is in place to see silver prices continue in a healthy bull market. I also think it will continue to outpace strengthening gold prices in 2017.
Meanwhile, silver's technical price action has been strong, and it's behaving well from that perspective. Last week even saw prices cross an important threshold that points to a 28.1% rise through the end of Q2 2017.
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Before we discuss this silver price indicator, let's look at why silver prices are up over the past five sessions…
The Price of Silver Today Continues Last Week's 1.5% Rise
The silver price started the last trading week on a slightly weak note. On Monday, Jan. 16, it opened at $16.79 and essentially worked sideways to close just slightly lower at $16.77.
But Tuesday was different. In early morning trading, silver prices ran up to $16.93 by the open and moved upward through the day. Silver had spent nearly the entire session above the psychologically important $17 mark. It logged a 1.4% gain to close at $17.16.
The strength in the price of silver continued during the day on Wednesday, Jan. 18. Despite closing 0.8% lower at $17.02, prices were up 0.6% to $17.27 by 11 a.m.
For perspective, here's a chart of the U.S. Dollar Index, whose wild swings on Tuesday and Wednesday help explain the silver price gains…
As Thursday came around, traders started buying the dollar again after taking profits the two previous days. That weighed on the price of silver, but only slightly. The metal opened at $16.98 and drifted a bit lower before closing at $16.99 for a slight 0.2% loss.
On Friday, the Donald Trump inauguration caused silver to sell off in early morning trading. However, the silver price regained the $17 level and settled at $17.05. That marked a weekly gain of 1.5%.
With all of the news surrounding Trump's inauguration, most investors missed a big milestone for silver prices. The metal crossed an important mark that points to more bullish momentum in 2017.
Here's why it's so important – and why it points to a 28.1% gain this year…
This Technical Indicator Shows the Price of Silver Will Gain 28.1% in 2017
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.