Silver Ticks Above $18.00
Silver prices have inched higher in Friday trade. Currently, silver is trading at $18.05, up $0.06 or 0.57% on the day.
Silver is back in familiar territory, as it hugs the 18.00 level. The metal showed strong swings last week, as tensions soared and then subsided after a major flare-up between Iran and the United States. On Tuesday, silver dropped as low as $17.68, its lowest level since December 24. However, with risk apprehension subsiding, the metal has climbed back to the 18.00 level.
Unemployment Claims Slide
After last week’s disappointing nonfarm payrolls report, there was positive news from the labor market on Thursday. Unemployment claims fell to 204 thousand last week, down from 214 thousand. This easily beat the forecast of 217 thousand, and was the lowest level in six weeks.
Retail Sales End Year on High Note
Retail sales, the primary gauge of consumer spending, were positive in December. The headline reading improved to 0.3%, up from 0.2% a month earlier. Core retail sales impressed with a gain of 0.7%, above the estimate of 0.5%. The strong numbers were a result of a late-holiday shopping spree by consumers. Still, 2019 saw moderate consumer spending, and inflation levels remain low, as seen in the December CPI release, which dipped to 0.3%, down from 0.2%.
Silver Technical Analysis
The key 18.00 level is fluid, as silver pushed above this line in the Asian session. Above, there is resistance at 18.60, which is protecting the 19.00 line. On the downside, the 50-EMA line is at 17.60, just above a support line at 17.50. This indicates substantial support for silver in the mid-17 range. However, if silver breaks below these support levels, there is room for the metal to fall all the way to the round number of 17.00, which is the next support level.
This article was originally posted on FX Empire
