FXEMPIRE
All

Restless Silver Flirts With 4-Month High

Investors are jittery as the U.S.-Iran conflict threatens to escalate. Iran has attacked U.S. bases in Iraq, but it is unclear if Washington will respond or will cooler heads prevail.
Kenny Fisher
Silver Price Forecast - Silver Markets Run Into Brick Wall

Silver has shown strong moves in both directions on Wednesday, as the markets remain jumpy in the aftermath of the U.S. drone strike which killed an Iranian general and sent shock waves across the Middle East. Currently, silver is trading at $18.41, up 0.17% on the day.

Investors Keep Eye on Safe-Haven Silver

With tensions in the Persian Gulf and across the Middle East at a fever pitch, safe-haven assets, such as silver and gold, are in demand. Gold investors are smiling, as the metal climbed as high as $1611 on Wednesday, its highest level since March 2013. Silver prices have also headed higher – in Wednesday’s Asian session, silver touched a high of 18.84, its highest level since September 5th.

On Wednesday, Iran attacked several military bases in Iraq on Wednesday, and a response from the U.S. could further unnerve investors and boost the safe-haven U.S. dollar. The unsettled state of the markets represents an opportunity for quick entries and exits, but traders should exercise caution.

U.S. Services PMI Within Expectations

The ISM Non-Manufacturing PMI was stronger than expected in December. The PMI accelerated to 55.0, up from 53.9 in the previous release. This figure beat the estimate of 54.5 pts. The PMI continues to point to expansion in business activity, as the services sector continues to outperform the manufacturing industry.

Next – ADP Nonfarm Payrolls

Investors will be treated to a host of employment releases this week, which are important gauges of the health of the U.S. economy and could affect silver prices. Later on Wednesday, we’ll get a look at the ADP nonfarm payrolls, which dropped to 67 thousand in November. Analysts are expecting a strong turnaround in the December release, with an estimate of 160 thousand. On Friday, the U.S. releases official nonfarm payrolls, which is forecast to fall to 150 thousand, down from 266 thousand a month earlier. Wage growth is expected to rise to 0.3%, up from 0.2% in November.

 

Silver Technical Analysis

The forecast for silver remains positive. Silver has managed to climb some distance from the 18.00 level, although this line certainly remains relevant and is providing support. Below, we find support at 17.50, followed closely by the 50-EMA line at 17.44. On the upside, silver tested resistance at 18.60 in the Asian session. Above, we find resistance at the round number of 19.00.

XAG/USD 1-Day Chart
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US