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Silver Dips Lower but Remains Close to 17.00 Level

Kenny Fisher

Silver has recorded losses in Thursday trade.  In the European session, silver is trading at $16.91, down $0.11 or 0.65% on the day.

Silver Yawns After Impeachment Vote

The impeachment vote by the House of Representatives on Wednesday was historic and full of drama, but precious metals such as gold and silver showed little movement after the decision to impeach President Trump. The lack of interest from precious metals underscores the fact that the vote was “priced in” by the markets – it was crystal clear that the vote would run along party lines and that Democrat-controlled House would vote in favor of impeachment. Next stop is the Senate, which will take up the impeachment process in January. There will be plenty of political theater ahead, but again the outcome is clear – the Republican majority will end this saga and vote not to impeach the President.

Will GDP Lift Silver Prices?

Silver has been steady this week, but that could change on Friday, when the U.S. posts Final GDP for the third quarter. This is the third estimate of GDP and is expected to confirm Preliminary GDP, which surprised with a gain of 2.1%, above the estimate of 1.9 percent. This indicates that the U.S. economy is growing at a respectable clip. A better than expected GDP release would raise investor sentiment and could weigh on safe-haven assets such as silver.

Silver Technical Analysis

Silver has dropped as low as 16.90 on Thursday, but it is too early to determine if silver is on a downtrend. Clearly, silver is having a tough time moving higher, as it is facing some immediate resistance barriers just above the symbolic 17.00 level. The 50-EMA continues to hover just above the candlesticks and is at 17.12. This is followed by a resistance line at 17.25. We could well see silver remain range-bound, with some support levels nearby. The 200-EMA is at 16.73. Below, there is support at 16.50. The 61.8% Fibonacci retracement level follows immediately at 16.41.

This article was originally posted on FX Empire