Silver prices enjoyed an upward swing last week. The silver price chart reported an opening at $17.84 on Monday. Heavy after-hours trading spiked the price of silver to above $18, but by Tuesday morning, the silver market was buying at $17.88. Solid buying left silver prices teasing the $18 mark on Tuesday and Wednesday, which both saw a close of $17.93. Opening above the psychologically important $18 on Thursday, the week high of $18.11 was reached by late afternoon. Friday saw more profit taking, but trading was strong enough to support a close at the $18.00 silver price. Growing global uncertainty in financial markets and troubling political concerns are two factors influencing prices.
The EU again has the market’s attention, as there are more rumblings about the stability of the organization and the euro. Brexit is now seen as a reality, and there are at least three important elections in France, the Netherlands, and Germany.
In the U.S. the market reacted to a stalled dollar and questions over the ongoing strength of the equities market, with growing concerns about a significant correction—or worse. This week’s buying and support was notable because of the coming week’s announcements and news. Traders will get an insight into the Fed’s thinking with the latest release of meeting minutes of the FOMC, and the government will report on jobs Thursday, followed with housing starts on Friday. 1 These will be examined to see if they indicate any slowing of the economy.
Traders will be watching closely to see if the news pushes silver prices higher or causes a short-term pullback. However, long-term sentiment is turning bullish, with many positions left to expire. 2