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While the 10.9% gain for silver prices in 2017 still leads over gold's 10.5% year-to-date gain, the former saw a sharp downturn last week.
Indeed, I had warned just last week that the price of silver would need to close above the $18.54 peak last reached in late February.
Not only have we not seen that happen, but silver has also been in a retreating mode over the last five trading days.
With a 200-day moving average around $18.10, the silver price's recent close below that level makes it all the more crucial to watch. Momentum indicators are clearly trending downwards, and silver mining stocks have seen similar weakness of late.
Still, it's important to remember that this decline in silver prices is healthy. The metal can't rally all year without a brief correction.
I still think silver will head higher this year, which is why I'll update you on my short-term and long-term predictions for silver prices in 2017.
First, here's a recap of the metal's sell-off last week…
Silver Prices Fall 3.3% Last Week (4/17 – 4/21)
After closing the previous week at $18.51, the price of silver opened a bit lower on Monday, April 17, at $18.50. It fell further throughout the day to settle 0.6% lower at $18.38.
Tuesday's action in silver actually mirrored that of the U.S. Dollar Index (DXY). Silver prices opened higher at $18.34 and plunged throughout the day alongside the dollar. Although it bounced back from the intraday low of $18.09, the metal still closed at $18.25 for a 0.7% loss.
Free Report: The Essential Guide to Buying Silver & Gold
The silver price opened lower on Wednesday as the DXY rallied from its recent lows. As the dollar neared the 100 level, the silver price kept falling and settled at $18.13 for a 0.7% decline.
Here's a day-to-day look at how the DXY trended last week…
On Thursday, April 20, silver prices once again mirrored the dollar's behavior. As the DXY rallied from midday to the early afternoon, silver also rallied alongside it despite falling in morning trading. But the silver price rally wasn't enough to give the metal a daily gain. It still logged a 0.7% loss and closed at $18.
Friday was no different as silver's losing streak continued. Prices fell below the $18 level and eventually closed 0.6% lower at $17.89 – the lowest close since March 24. That marked a weekly loss of 3.3%.
Last week's silver price decline serves as a big indicator for what's ahead in both the short term and long term.
Here's precisely where I see the price of silver heading this year…
Our Short-Term and Long-Term Forecasts for Silver Prices 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.