Silver has posted slight gains in Wednesday trade. In the North American session, the metal is trading at $16.89, up $0.07 or 0.42% on the day.
Silver Pushes up to $17.00
After a quiet spell this week, silver is showing some upward movement on Wednesday and tested the symbolic 17.00 line. Silver has been sensitive to developments in the trade talks between the U.S. and China, and the gains on Thursday could reflect investor uneasiness after combative remarks by President Trump in New York on Wednesday. Trump threatened to escalate the trade war with China, saying that tariffs would be raised “very substantially” if the sides failed to reach an agreement. At the same time, Trump added that a “Phase 1” interim deal could “happen soon”, and his tough talk could be aimed at his electoral base in an election year. Last week, investor optimism soared on a Chinese report that the sides had agreed to phase out tariffs, and safe-haven silver was hit hard, falling 7.1 percent.
Investors Eye Hong Kong Violence
The civil unrest continues in Hong Kong, as violent demonstrations continue. Protesters are demanding more political freedom, which could unleash a harsh response from the Chinese regime. If the violence continues, there is a danger that China will respond more forcefully and send in troops to suppress the demonstrations. This could sour investor risk appetite and boost precious metals such as silver.
Silver Technical Analysis
Silver tested the 17.00 level in the European session but has since retreated. This was the first time this week that the metal has tested this resilient line. On the downside, the 200-EMA is just below the metal, at 16.66. Below, we find weak support at 16.50. This line saw action in early August. This is followed by support at the round number of 16.00. On the upside, there is resistance at 17.25.
This article was originally posted on FX Empire
More From FXEMPIRE:
- What Happens To The Global Economy If Oil Collapses Below $40 – PART I
- EUR/USD Price Forecast – Euro Continues To Show Weakness
- Silver Price Forecast – Silver Markets Rally On Wednesday
- Crude Oil Gains Ground, U.S. Inflation Improves
- GBP/USD, EUR/GBP, USD/CAD – Currencies Drifting in Quiet Market
- Crude Oil Price Forecast – Crude Oil Markets Continue To Jostle Back And Forth