Silver has steadied on Tuesday, after posting gains at the start of the week. Currently, silver is trading at $18.11, down $0.01 or 0.07% on the day. On the fundamental front, the U.S. releases ISM Non-Manufacturing PMI. The index continues to point to expansion in business activity, although the November reading dropped to 53.9, down from 54.7 pts. The December release is projected to accelerate to 54.5 pts.
Nervous Investors Snap up Gold, Silver
The U.S. airstrike which killed an Iranian general has unnerved investors, who have snapped up precious metals, which act as safe-havens in times of uncertainty. Silver gained as much as 2.5% on Monday, before retracting and surrendering most of these gains. Gold showed a similar trend and gained 1.0% on the day. Gold prices touched $1588 on Monday, its highest level since April 2013. With Iran promising revenge for the killing and President Trump saying he will respond to any hostile move by Tehran, silver and gold could continue to rack up gains this week.
Investors Eye Employment Data
Investors will be treated to a host of employment releases this week, which are important gauges of the health of the U.S. economy and could affect silver prices. On Wednesday, we’ll get a look at the ADP nonfarm payrolls, which dropped to 67 thousand in November. Analysts are expecting a strong turnaround in the December release, with an estimate of 160 thousand. On Friday, the U.S. releases official nonfarm payrolls, which is forecast to fall to 150 thousand, down from 266 thousand a month earlier. Wage growth is expected to rise to 0.3%, up from 0.2% in November.
Silver Technical Analysis
The forecast for silver remains positive. The symbolic level 18.00 remains relevant and is currently an immediate support line. Below, we find support at 17.50, followed closely by the 50-EMA line at 17.37. On the upside, there is resistance at 18.60.
This article was originally posted on FX Empire
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