Will silver prices overcome the $24 mark
2023.01.23 11:38
Will silver prices overcome the $24 mark
Since September 1, 2022, when it had just reached $17.50 per ounce, it has increased by 37% in just three months to $24. Silver has become rangebound and stuck in congestion for the past six weeks. The range has been narrow, ranging from $23 as the floor to just above $24.
Most of the time, this congestion causes a big move. It’s a typical contest between bears and bulls. Who is going to give up first?
The fact that the fundamentals point higher is good news for the bulls. Physical supply is extremely limited, interest rates are soon to stall (one of the reasons for the latter), and the dollar is deteriorating. The bad news for the bulls is that the last two instances of congestion resembling this one have resulted in a move lower.
The shorts appear to be targeting an inflection point at the $24 level. Despite daily and weekly closes above this level, it has never been firmly held despite multiple attacks. Having said that, given the extent of the rally that began in September, it is perfectly normal for there to be a pause before a move higher.
The Fed rate ascent of 25 premise focuses is very much valued into the and silver. Missing a total shock, the following week’s choice is probably not going to influence the cost in the event that it comes in at 25 places. With 55 000 positions being drained.
