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Silver Grinds Above $17.00, Final GDP Looms

Kenny Fisher

Silver is steady in Friday trade. In the European session, silver is trading at $17.03, down $0.02 or 0.12% on the day.

Investors Eye Final GDP

Silver has been treading water this week, with the metal showing little appetite to make any significant moves. Will we see any volatility on Friday, with the release of the Final GDP report? GDP releases are among the most important economic indicators and should be treated as potential market-movers. The U.S. will release Final GDP for the third quarter, with a forecast of 2.1 percent. This figure would confirm the second-estimate reading. A better than expected GDP release would raise investor sentiment and could weigh on safe-haven assets such as silver.

Silver Shrugs off Impeachment Drama

The U.S. posted solid PMI and construction numbers this week, but silver showed little interest. The historic impeachment vote on Wednesday also failed to trigger any movement in precious metals, such as gold and silver. The lack of interest from precious metals underscores the fact that the vote was “priced in” by the markets – it was a virtual certainty that the Democrat-controlled House would vote to impeach President Trump, so market response was muted.

Silver Technical Analysis

Silver has dropped as low as 16.90 on Thursday but has clawed back above the $17.00 level. 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 16.74. 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