The silver price today (Monday, May 15) is continuing the rally that started last Wednesday, May 10. It's up a big 2.2% this morning and trading at $16.77 – its highest price since May 2 – after North Korea conducted another missile test over the weekend.
The recent rebound begs the question: Has the 9.4% silver price drop from the April 17 peak of $18.51 finally run its course?
Although last week started off badly, silver prices ended the week 0.8% higher. That could look like a bottom for this correction cycle.
Looking at the latest Commitment of Traders (COT) report, while it has come off extreme bullish levels, the metal still needs to work off some of the recent bearish sentiment.
At the same time, technical price action certainly indicates the metal is due for a rally based on a couple of metrics.
The silver price couldn't catch a break until last week. It's tough to say whether or not the current correction is completely over, but we're likely looking at a relief rally at this point.
As we look farther out, the prospects for this metal are more promising than ever given how fundamental demand is set to outstrip supply this year.
We'll get into those factors and why they reaffirm my bullish price target for the end of 2017. First, let's look at silver's important rebound last week…
Silver Price Today Continues Last Week's Three-Day Rebound
After closing at $16.27 on Friday, May 5, the price of silver got a generous weekend bump last week thanks to the French election. But it opened lower on Monday, May 8, as higher global markets urged investors away from safe havens like silver. The metal eventually closed the session at $16.20 for a 0.4% loss.
Tuesday brought out more sellers, and despite an overnight bounce, silver still opened lower at $16.15. More selling pressure forced prices down to an intraday low of $16.06 – the lowest since bottoming at $15.99 on Dec. 30, 2016. Silver closed Tuesday 0.3% lower at $16.15.
The silver price weakness came from the strengthening U.S. Dollar Index (DXY), which jumped over 50 basis points from a low of 99.10 early on Tuesday to a peak of 99.68 by mid-afternoon…
However, Wednesday saw a strong open as silver started the session at $16.27. Despite some weakness throughout the day, prices closed at $16.17 for a slight 0.1% gain.
On Thursday, May 11, silver prices really picked up momentum. They opened at $16.32 and managed to settle at $16.30 for a 0.8% rise by the close. These gains came despite steadiness in the dollar.
As the DXY sagged on Friday, the price of silver rallied higher during the session. It climbed 0.6% to close the day at $16.40. That capped off the metal's 0.8% weekly gain.
And the silver price today is already posting strong gains. It's up 2.2% to $16.77 thanks mostly to renewed fears of a nuclear threat after North Korea tested another ballistic missile over the weekend. A close at this silver price level would mark the highest settlement in nearly two weeks.
Although silver prices started last week on a volatile note, the late-week rebound shows the recent correction may be behind us. That's why I believe prices will keep running higher from here thanks to several strong fundamental and technical factors.
Here are my short-term and long-term silver price predictions…
Price of Silver Could Rally to These 2 Targets 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.