FxWirePro: Silver in longest daily decline since 2015; outlook bullish

Silver is suffering its longest daily decline since November 2015, when it declined for 15 consecutive days. Today marks the seventh day of the slide in silver as the demand for commodities got hit in 2017 after a blockbuster run in 2016. In the past seven days, silver has declined by 4.3 percent. The French election outcome, where the pro-European Union candidate  Emmanuel Macron beat the Frexit candidate Marine Le Pen in the first round has also led to the decline reducing investment demand. In addition to that, a better than anticipated performance by the dollar has also kept a lid on the price of the silver.

Despite this lackluster performance of the silver in the past seven trading sessions, we remain bullish on silver as we expect it to benefit from geopolitical tensions around the world. While in the short term it is poised to consolidate around $18-19 area, in the medium term we expect the silver to reach towards $22 per troy ounce. Silver is currently trading at $17.7 per troy ounce.