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After putting in a distinct bottom early last week, silver has staged a roaring comeback.
From Tuesday's low to Friday's high, silver was up 3% over just three days. Today (Tuesday, May 15), silver prices are hovering near $16.30 per ounce.
The markets powered higher last week as the dollar headed south. That was enough to help push silver prices higher, as investors recognized its relative value.
Meanwhile, technical indicators continue to flash green for the grey metal even as stocks climb. Plus, the dollar may only be taking a short-term rest before grinding higher.
Given silver's bounce back over the last couple of weeks, even as the dollar continued to rise, this precious metal is more than holding its own, in my view.
I think silver's going to soon gain recognition more as a massively undervalued asset than as a safe haven.
Before I get into my silver price outlook, here's how the precious metal is trending now…
How Silver Prices Are Trending This Week
Silver started out on Tuesday (May 8) in rough shape, thanks to a soaring dollar that pulled the U.S. Dollar Index (DXY) up to 93.22 around 9:30 a.m. By late morning, silver bottomed around $16.30, which would be its ultimate low for the week.
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Despite the DXY pushing even higher on Wednesday, to a peak of 93.40 before correcting, silver managed to climb to $16.56 before settling back to $16.46. The next day, the dollar fell further, and the DXY traded down to 92.70, allowing silver to climb to $16.69 to end Thursday trading.
Here are recaps of the DXY and the S&P 500 for the last five trading days.
Stocks moved mostly sideways on Friday and Monday. But the dollar put in a bottom on Monday morning, with the DXY touching 92.25 before reversing course to reach 92.65 by late afternoon. That punished silver prices, which dropped to $16.60 mid-day before dropping again to close near $16.48.
Now that we've looked at what was behind the rally in silver prices this week, here's where I see them heading from here…
What's Next for Silver Prices in 2018
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.