FxWirePro: Silver bull run not over; likely to form support base around $16 area

Silver is down for a fourth straight week this week, however, the bull run that began in July after silver made a bottom around $13.9 area is not likely to be over. The latest selloffs could very well be a major correction. We expect the gold and silver to benefit gradually from the ongoing geopolitical trouble, while marching equities and strong dollar pose a threat.

We at FxWirePro, expect the silver to form a base around $16 area before starting to move higher. Judging by the price action so far, we can suggest that this bull run has the potential to push the silver price to test the resistance around $20 per troy ounce area. Investment demand and bullish speculative force are likely to be the major driving factor.