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Kenny Fisher

Silver prices are lower at the start of the week. Currently, silver is trading at $16.84, down $0.10 or 0.65% on the day.

Hong Kong Bill Irks China
Silver prices have headed lower on Monday, as the trade talks between the U.S. and China may have hit another bump. The U.S. Congress has passed a bill supporting pro-democracy supporters in Hong Kong, and predictably, this has infuriated the Chinese government. However, the Chinese have apparently decided not to retaliate against the U.S. At the same time, China will not simply pretend that it’s “business as usual”, and a report that China has decided to delay the trade negotiations has chilled investor risk appetite and sent silver and gold prices lower.

Next – U.S. Manufacturing PMI

Last week was relatively quiet for silver, but I expect more movement in the upcoming week. Later on Monday, the U.S. releases its most important manufacturing report, ISM Manufacturing PMI. The index has struggled, posting three straight readings in contraction territory. Another decline is projected for November, although the index is expected to rise to 49.2, up from 48.3 in the previous release. An unexpected figure from the PMI could shake up silver prices on Monday. Traders should also keep an eye on the end of the week, when the U.S. releases key employment numbers – employment change and average hourly earnings.


Silver Technical Analysis

The silver price forecast is neutral, as silver remains in a consolidation phase. Note that silver remains sandwiched between the 50-EMA and 200-EMA lines. There is immediate resistance at 17.25. This is followed by the 50-EMA at 17.27. Above, 17.75 is the next resistance line. On the downside, the 200-EMA is providing support at 16.71. This is immediately followed by support at 16.50. If silver can break below this level, it has room to move down to 16.00, a level with psychological significance.

XAG/USD 1-Day Chart
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