How high can silver go?

06/08/2020

You must have noticed the current vertical movement in silver and in precious metals generally. Silver rose from 18 USD in July to 28 USD now, which is a 60% increase in five weeks. 

On Thursday, it was up another 6%, trading above the 28 USD threshold. How high can silver go? 

Analysts pointed out that the silver-gold ratio remains historically wide. That means either gold is overvalued or silver is undervalued. If silver is underpriced, “there is a lot of money to be made”.

Basically, it is nearly impossible to set any targets right now as the trend is really vertical and it certainly looks like a large bubble. The next level to watch will certainly be near 30 USD and if bulls push silver above this resistance, another 10-15% run cannot be ruled out. 

Alternatively, the important support seems to be at 26.00 USD and as long as the price remains above this support, short, medium and long-term outlooks all look bullish. 

From the intraday perspective, all small dips are expected to be bought as the buying power is dominating the markets. 
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