FxWirePro: How far will current silver rally go?

The recent weakness in the dollar, and a relatively higher demand for safe haven assets due to increased risks of fiscal policy uncertainties in the United States, Brexit policies in the United Kingdom and economic uncertainties with regard to China have triggered a fresh inflow of money to the precious metal pack. After bottoming around $1122 per troy ounce in December, the price of gold has jumped to $1204 per troy ounce as of today, while silver has jumped from $15.6 to $16.9 per troy ounce.

So is it a major reversal?

We, at FxWirePro, have some doubts on that. We don’t think the headwinds arriving from a stronger dollar haven’t abated completely but only taking a pause. We think there may be some juice still left for the bulls in the precious pack but upside from here is limited.

Silver is likely to find very strong resistance around $17.2 area, which we believe would be very difficult to clear. Even if the white metal presses ahead the upside is very well likely to remain limited to 418 per troy ounce.