Silver prices are higher on Tuesday, after four consecutive losing sessions. In European trade, silver is trading at $16.93, up $0.07 or 0.46% on the day.
It’s a busy week ahead of the Thanksgiving holiday, with a cluster of economic releases ahead of the holiday. Tuesday’s highlight is CB Consumer Confidence, which is projected to rise to 126.8 in September. This key indicator dropped to 125.9 in October, short of the estimate of 128.2 pts.
On Wednesday, the U.S. releases Preliminary GDP (second estimate) for the third quarter. Advanced GDP (initial estimate) posted a gain of 1.9%, and the second estimate is projected to confirm this figure. We’ll also get a look at Chicago PMI and the Core PCE Price Index, which is considered the Federal Reserve’s preferred inflation indicator.
Will Hong Kong Turmoil Affect Phase 1?
Investors continue to keep a close eye on developments in Hong Kong. Recent demonstrations led to violent confrontations between police and protestors, with the Chinese government threatening to bring in the army to suppress the unrest. The U.S. has warned China over the violence, and pro-democracy candidates did extremely well in district elections. Still, these developments are not expected to affect the trade talks. On Monday, a Chinese government newspaper said that the two countries were “moving closer” to clinching an interim trade deal.
Silver Technical Analysis
The silver price forecast remains neutral, as silver is range-bound so far this week. There is immediate resistance at 17.25. This is followed by the 50-EMA at 17.34. Above, 17.75 is the next resistance line. On the downside, the 200-EMA is providing support at 16.53. This is immediately followed by support at 16.50. If silver can break below this level, it has room to move down to 16.00, a symbolic level.
Traders should keep in mind that we have seen a lack of a trend for an extended period of time. This means that a breakthrough could be close at hand.
This article was originally posted on FX Empire
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