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.
Silver Back Below $17.00 as Possible Trade Talk Snag Unnerves InvestorsSilver is looking up at the $17.00 on Monday. The metal has lost ground on concern that up-and-down U.S-China trade talks could be stalled.
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.