Silver is steady on Wednesday, after climbing 1.5% on Tuesday. In the European session, silver is trading at $17.11, down $0.03 or 0.19% on the day. With the U.S. releasing key reports, we could see stronger movement from silver during the day.
Trump Threat Boosts Silver
Silver prices jumped on Tuesday, as investors are becoming increasingly nervous about the prospects of the U.S. and China reaching a trade agreement. On Tuesday, the U.S. House of Representatives voted to sanction Chinese officials involved in a crackdown on the Uighar Moslem minority. In retaliation, Chinese officials are reported to have prepared a list of “unreliable entities”, which could be a broad hint that some U.S. companies will face sanctions. As well, U.S. President Trump told reporters that a deal with China could be delayed until after the U.S. election in 2020. Trump may have intended the remarks in order to pressure China, but they have contributed to risk apprehension and boosted silver prices.
Next – U.S. PMI, ADP Nonfarm Payrolls
Investors will be keeping an eye on key U.S. indicators, which will be released later in the day. The ISM Non-Manufacturing PMI came in at 54.7 in October, and little change is forecast for November, with an estimate of 54.5. This points to respectable expansion in the services sector. As well, ADP Nonfarm Payrolls, which is expected to climb to 137 thousand, up from 125 thousand a month earlier.
Silver Technical Analysis
Silver flexed some muscle on Tuesday, with gains of 1.5 percent. Still, the silver price forecast remains neutral, as the metal remains close to the $17.00 level. The 200-EMA and 50-EMA lines remain relevant and could be headed to a crossover. If the 200-EMA does break above the 50-EMA, this would be a bearish signal (“death cross”).
On the upside, the resistance line of 17.25 is under pressure. It is closely followed by the 50-EMA, at 17.26. Above, there is resistance at 17.75. On the downside, the 200-EMA is at 16.55, a shade above support at 16.50. Below, there is support at the round number of 16.00, a level with psychological significance.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Markets Rebound, Phase One Trade Deal Is Close, Labor Market Loses Its Luster
- Oil Price Fundamental Daily Forecast – EIA Reports Larger-Than-Expected Draw Down
- AUD/USD Price Forecast – Australian Dollar Finds Buyers
- EUR/AUD Bulls are Regaining Control
- Silver Takes Pause After Strong Gains
- Natural Gas Price Fundamental Daily Forecast – Overnight Warming Trend Weighing on Prices