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Silver Continues to Grind at $17.00

Kenny Fisher

Silver prices have ticked higher in Wednesday trade. In the European session, silver is trading at $17.06, up $0.05 or 0.38% on the day.

Muted Response to Phase 1 Deal

There was plenty of fanfare in the White House, as President Trump gushed about the new trade deal with China. The agreement is the first breakthrough in the bitter trade war that has rocked the global economy. Still, the deal is limited in scope and some key details remain unclear. Trump stated that China had committed to purchase some $50 billion in U.S. agricultural products, but there was no confirmation from Chinese officials. Even with the agreement, the U.S. will continue to impose 25% tariffs on $250 billion of Chinese imports, along with a 7.5% tariff on another $120 billion of Chinese products. Precious metals have shown a guarded response, as gold and silver prices have shown limited movement to the trade deal.

Ahead – Final GDP

Investors are looking ahead to Friday, when the U.S. releases Final GDP for the third quarter. This will be the third and final estimate. The second estimate came in at 2.1%, beating the forecast of 1.9%. Final GDP is expected to confirm this figure, which indicates that the U.S. economy is growing at a respectable clip. A better than expected GDP release would be bullish for the U.S. dollar.

Silver Technical Analysis

Silver has steadied around the 17.00 level, after recovering from sharp losses seen in early December. The silver price forecast remains neutral. Silver is having a tough time moving higher, as it is facing some immediate resistance barriers. The 50-EMA continues to hover just above the candlesticks and is at 17.14. This is followed by a resistance line at 17.25. On the downside, the 200-EMA is at 16.59. Below, there is support at 16.50. The 61.8% Fibonacci retracement level follows immediately at 16.41.

XAG/USD 1-Day Chart

This article was originally posted on FX Empire