As of 12:25 p.m., the price of silver today (Monday, March 27) is up 1.9% to $18.09. That's the first time the metal has traded above $18 since March 1 over three weeks ago.
Since the Fed rate hike on March 15, silver prices have exploded 6.9% higher. The rally comes as stocks, oil, and the U.S. dollar have taken hits. Silver has gained 4% over the past week while higher short-term rates, courtesy of the Fed, were unable to dampen the buying enthusiasm.
So far in 2017, the silver price is up an impressive 12.8% and looks poised for more gains. It's clearly building momentum as it currently sits just above its 50-day moving average.
Silver tends to outperform gold in precious metals bull markets. And I expect that to be true as this bull market gains steam and progresses in the next few years.
The gold/silver ratio has risen since early March and has consolidated near 71, but I think it's ready to make another move lower. That's because I see silver prices rising faster than gold prices.
In light of the big rally recently, I'm going to share with you my short-term and long-term silver price predictions.
First, here's a day-to-day look at silver's big performance since last Monday...
Price of Silver Today Caps Off a Huge 4% Weekly Gain
Silver prices got another boost higher as they closed out their positive action on the heels of that widely expected rate hike.
On Monday, March 20, silver prices opened at $17.36 and trended higher throughout the session. They ended the day at $17.40 for a 0.2% gain.
As the U.S. dollar continued to weaken, silver kept benefiting. Prices shot up to $17.55 in the morning before settling back at $17.51 by the close. That marked a solid 0.6% rise on the day.
On Wednesday, as the day progressed, the U.S. Dollar Index (DXY) weakened further, continuing to fall below the 100 level. That helped silver prices bounce from a weaker open at $17.46 to reach $17.55 by the afternoon. It eventually ended the day flat at $17.51.
The price of silver opened higher on Thursday at $17.63. And although the dollar continued to weaken, silver sellers still maintained the upper hand. Prices managed to climb 0.2% to settle at $17.55.
Buyers came out on Friday morning before the U.S. House of Representatives failed to repeal and replace Obamacare. The silver price leaped 1.1% higher to close the week at $17.73.
Last week's rally seems to have poured over into this week as the price of silver today is up another 1.9% to $18.09. With that, the metal has surged 4% since last Monday, March 20.
So what might be next for silver? We can determine where silver prices will go in 2017 by looking at a few technical indicators, namely the metal's 50-day and 200-day moving averages.
Here's where I see the silver price heading in the short term and long term...
My Bullish 2017 Silver Price Prediction
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Let's start by looking at this silver price chart, which shows how the metal has trended since October 2016...
There are a few items of note. First, silver established a higher low between late January and mid-March. It now trades above its 50-day moving average, and both the RSI and MACD momentum indicators are bullish.
If we look at the gold/silver ratio in the chart below, we see that it appears to have topped out around the 71 level. I think it's poised to drop from here, as silver price gains quickly catch up on gold price gains.
As well, momentum for the gold/silver ratio appears to be topping out as the 50-day and 200-day moving averages continue to trend downwards. Again, that's bullish for the silver price.
As with gold, silver stocks look to be stalling compared to the metal's price advance in the last few days.
This is indicated in the chart below, which shows how the Global X Silver Miners Fund (NYSE Arca: SIL) - which tracks silver mining stocks - and iShares Silver Trust ETF (NYSE Arca: SLV) - which tracks the silver price - have trended recently...
I expect that will only be a temporary consolidation. If silver prices continue higher - as I think they will - silver mining stocks should quickly catch up.
Meanwhile, the dollar is becoming weaker and weaker. With the DXY currently near 99.15, it's at its lowest level since November 2016. I expect the dollar to move even lower in the near term, which would boost the silver price in the process.
At its current pace, I see silver rising 2.3% to hit $18.50 - which it last reached in late February - sometime in Q2. By the end of 2017, I expect the price of silver to surge 21.6% from its current price to $22.
Editor's Note: A door has opened for an ultra-rare but powerful anomaly in the stock market... It involves a precious metal, one that's considered exceedingly more rare than gold. Get all the details.