Silver is flat in Tuesday trade. In the European session, the metal is trading at $17.09, up $0.04 or 0.28% on the day. On the fundamentals front, the U.S. releases Building Permits, which is expected to remain steady at 1.39 million.
Ahead – FOMC Minutes
It’s a light economic calendar this week, so investors will be focused on the Federal Reserve minutes. This report will provide details of the most recent meeting, which took place at the end of October. At the meeting, the Fed lowered the benchmark rate to 1.75%, the lowest the rate has been since May. This also marked a third straight rate cut, but at the same time, the move was considered hawkish, as policymakers sent a signal that they were taking a pause from trimming rates. The Fed said that the economy was “in a good place”, but also stated that “uncertainties about the outlook remain”. The minutes are sure to provide insights into the Fed’s take on the economic picture, and traders should treat the minutes as a market-mover. Meanwhile, Fed Chair Jerome Powell met with President Trump on Monday. Trump has criticized the Fed, saying that rates remain too high. For his part, Powell reiterated that he would continue to be guided by the twin goals of stable inflation and maximum employment.
Silver Technical Analysis
Silver has been range-bound for over a week, as the metal continues to stay close to the 17.00 level. We are certainly due for a breakout, but when? Traders should note that the 50-EMA and 200-EMA lines remain relevant. There is immediate resistance at 17.25. This is closely followed by the 50-EMA, which is currently at 17.44. Above, there is resistance at 17.75.
On the downside, the 200-EMA is just below silver, at 16.68. This line has held in support since November 8. Close by, there is support at 16.50. This is followed by support at the round number of 16.00. I don’t expect much change in the silver prices forecast, as the metal isn’t showing any signs of a breakout.
This article was originally posted on FX Empire
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