On Monday, November 3, silver prices rose to $48,66 per ounce (+1,03%), consolidating near record highs. Analysts predict the price of the white metal could double and approach $100 after breaking above the $50 barrier.
The rise in silver prices coincided with increasing market turbulence as investors scale back risky assets. As expected, the Federal Reserve cut rates by a quarter point, but Chairman Jerome Powell’s statements rule out further easing.
Silver price on November 3. Source: Bullion Vault
According to an October 13 CNBC analysis, silver could double to $100 an ounce after successfully breaking above $50, which has been a major resistance since peaking at $49,45 in 2011.
The white metal’s performance often correlates with gold’s dynamics, and given that gold has surpassed the $4000 mark this year, the price of silver could follow the yellow metal’s rise.
According to technical analysis, the Fibonacci extensions and corrections over the last two weeks of the extension drawn along the uptrend from the April lows of this year to the October highs show that the 100% extension is located near $72.
The 161,8% Fibonacci extension is located near $88, which is consistent with forecasts of a possible doubling of silver prices in the medium term.
The current consolidation in the $47-$49 range represents a healthy pause after silver’s incredible 71,9% rise since the start of the year. Silver opened the week at $48,83, bouncing off the 50-day EMA, suggesting the white metal is setting the stage for the next leg of its rally rather than a trend reversal.
Technical Analysis of Silver Price. Source: Tradingview.com