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Silver Up on Fading Dollar As Analysts Predict Big Move Ahead

June 7, 2018 at 19:33 by Matt Jackson

Analysts have predicted a big move ahead for silver prices, which made slight gains on Thursday. They pointed to the stability in what is normally a volatile market.

Price charts show a 5-year inverse head and shoulders pattern coming to an end. The right shoulder is nearing completion, which means that prices are ready to break out at any point. Today’s gains can be attributed to a drop in the dollar, which also saw gold prices make gains earlier in the day, although these have now retraced and prices for the yellow metal are roughly similar to the start of the day.

On a multi-year chart, silver has formed a giant bowl, which is a bullish technical indicator. It will meet resistance at around $20 per ounce but it is expected that prices will rise soon and could rise very quickly.

The head and shoulders pattern that has been forming since 2013 is also close to coming to fruition and is another bullish chart pattern. Volume has gathered pace considerably from the trough of the head, and the neckline is expected to break at around $19 per ounce.

There has been unusually little movement in silver over the past 6 months, with an overall neutral trend. When the accumulation stage ends, analysts expect silver prices to break the head and shoulders and bowl pattern, which will ultimately lead to a breakout.

June is traditionally silver’s weakest month, while July is a seasonally strong month. August is usually weak again, and September the strongest month of the year for the precious metal.

Oil prices are currently up 0.41% at $16.71 an ounce at 20:30 GMT.

If you have any questions and comments on commodities today, use the form below to reply.

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