Silver Price News: Silver Takes a Pause After Rally on Stronger Dollar

The strength of the U.S. Dollar has curbed the recovery of silver, which saw its price decline to $24.1 in early trading. 

The main trend, however, remains positive for the grey metal. Indeed, when considering the fundamentals and the price moves of the last few days, we can consider this retracement as a physiological correction, after the rally seen in the first part of this week. The precious metal traded at around $22.7 per ounce last Friday, while at the closing bell on Wednesday evening it was changing hands at $24.3, or around 1.6 dollars higher (+6%). From this top, silver has lost only 1%, remaining above $24.

Some traders might have shaved their long position to take profit after the recent gains and to reduce their exposure ahead of Jerome Powell’s speech at the Jackson Hole Symposium. Indeed, investors are awaiting further indications from the Federal Reserve on its next monetary policy decisions. Any dovish comments could make space for further gains and the peak reached in late July, at $25-$25.2, could be within reach. However, we think it’s more likely that silver will consolidate around the current level – between $23.7 and $24.3 – before resuming its rally.