Silver – Tough consolidation

After silver prices initially corrected by around 15.5% for seven weeks since the last significant high point on December 4, 2023 at $25.91, the silver market is now stuck in a tough consolidation. A trendless sideways shift between around 22 and 23.20 US dollars is causing a lot of irritation and frustration among silver fans.

This painful sideways consolidation has been taking place on the gold market since the beginning of the year. Obviously, the sharp increase in October and November will continue to be digested and consolidated over time. There is still no sign of a sustainable trend reversal.

.  Silver in US $ - Daily Chart

With a double low of $21.92 on January 22nd and $21.93 on February 14th, silver prices are trying to bottom out. But although the three-day increase in the previous week was briefly a little stormy, the falling 200-day line (US$ 23.28) has not yet been sustainably regained.

Instead, the price of silver has slipped down again in the last few days and the daily stochastics are providing a sell signal. It remains to be seen whether the broad support zone between $21.50 and $22.70 will support prices again. After all, in addition to the lower Bollinger Band (22.07 US dollars) around 21.50 US dollars, the uptrend line of the last four years is also waiting here!

Together with the oversold weekly stochastics, the chances of a bullish trend reversal are actually quite good.

Ultimately, silver prices have been moving sideways between $21.90 and $23.50 since the beginning of the year, continuing to paint a listless and trendless picture on the silver market. There is currently no sign of an end to the tough consolidation, so once again it remains an appeal for patience.

Conclusion: Silver - Tough consolidation continues gold and silver are currently leading a shadowy existence. The music is clearly not playing on precious metals at the moment.

Nevertheless, gold and silver prices are still holding up reasonably well given the rising interest rates and the slightly stronger US dollar . Given the complex and confusing geopolitical situation, new momentum could arise at any time.

In addition, sooner or later the Fed will have to lower interest rates again in order to stabilize the financial markets, which will then probably collapse.

Overall, the largely ignored breakout movement in the gold price is still intact and is likely to breathe new life into the silver price over the course of the year.