Silver Retreats from 18.00 Level
Silver continues to lose ground this week. In Tuesday’s European session, the metal is trading at 17.70, down $0.15 or 0.86% on the day. After a late-week rally, the metal has reversed directions and is down 2.0% this week.
Ahead – GDP and the Federal Reserve
Investors are keeping an eye on Wednesday, with some key releases on the calendar. The U.S. will release the initial release for third-quarter GDP. The final reading for second-quarter GDP came in at 2.0%, and the markets are braced for a weak reading, with a forecast of just 1.6%. The U.S. economy is clearly undergoing a slowdown. The manufacturing industry continues to sputter as the ongoing U.S.-China trade war as taken a toll on U.S. exports.
Another key event is the Federal Reserve’s monetary decision. The Fed trimmed rates by 25 basis points at the last two meetings, and policymakers are expected to repeat this move on Wednesday, bringing rates to a range between 1.50% and 1.75%. The FOMC has priced in the likelihood of a rate cut at 96%. Still, the markets could react, given the magnitude of a third consecutive cut. This could translate into gains for precious metals such as gold and silver, as the Fed continues to cut rates in an attempt to boost the U.S. economy, which is undergoing a slowdown.
Silver Technical Analysis
Silver tested resistance at the 18.00 line on Monday but has retreated in Tuesday trade. The trend has been down this week, but with the 50-EMA providing support at 17.52, there may not be much room for the current downward trend to continue. I continue to keep an eye on the 18.00 line, which remains vulnerable. On the downside, there is support at 17.00, followed by the 200-EMA at $16.37.
This article was originally posted on FX Empire
More From FXEMPIRE:
AUD/USD Price Forecast – Australian Dollar To Test Resistance
GBP/USD, EUR/GBP, USD/CAD – North American Session Daily Forecast
S&P 500 Price Forecast – Stock Markets Continue To Grind Higher Ahead Of Federal Reserve
GBP/JPY Price Forecast – British Pound Bounces After Initially Falling Against Japanese Yen
Crude Oil Price Forecast – Crude Oil Markets Find Support Later In The Day
