Silver price is in its third straight day of gains, helped by a relatively weak US dollar. The metal is trading at $27.60, which is higher than Thursday’s low of $25.88. Similarly, gold and copper prices are also relatively higher today.
Silver news: Silver price soared early this month as investors reacted to the new demand by social media traders. The rally was short-lived as the price tumbled by more than 13%. This week, the situation has changed, helped by the overall weaker US dollar.
The dollar index has dropped substantially since Friday when the US published weak job numbers. As a result, there is talk by the Biden administration to provide more than $1.8 trillion in stimulus. Such a deal will be positive for silver because of its industrial characteristics. Also, such stimulus, at least in the short-term, will be bearish for the US dollar.
Silver price outlook
In my last update on silver, I pointed to the formation of the cup and handle pattern on the daily chart. This pattern still remains. In fact, we can argue that the recent decline was part of the handle pattern. In fact, looking at the chart shows that the lowest level on Thursday was also the highest point on November.
Therefore, in my view, I suspect that the price will continue rising as bulls attempt to break past the YTD high of $30. However, another retest of $26 and below will invalidate this trend.