After peaking at $18.46 on Monday, silver prices moved in a narrow range while traders awaited the president’s speech and news about planned economic policy changes. Amid mild reactions to the speech, steady buying sent the price of silver to $18.43 on Wednesday. The silver price chart reported a small pullback on Thursday, with the white metal selling for $18.35. Strong buying took the price back to just under the important $18 price point before closing on Friday. 1
In the coming week, traders will be monitoring the strength of the dollar and the impact of the recent Fed announcement of another interest rate hike. However, many traders note that the FOMC’s announcements have had marginal impact on precious metals prices due to the earlier pricing in of expected increases. Nonetheless, higher interest rates can cause some movement to other interest-bearing assets.
The coming week will be closely watched on several fronts. The new administration is expected to discuss its plans for health care and tax reform. On the international front, the German Deutsche Bank’s proposal for restructuring will be evaluated by the market, as well as continuing concerns over the euro and the European Central Bank.