Silver Flexes Muscles, Pressing on $18.00Silver has enjoyed an excellent week. The metal has climbed close to 4 percent this week and is pressing on the symbolic level of $18.00.
Silver prices continue to climb this week. In Friday’s European session, silver is trading at $17.82, down $0.05 or 0.30% on the day.
Cheerful Christmas for Silver, Gold
The currency markets have been generally quiet during Christmas week, but it has been a much different story for silver, which has posted gains every day so far this week. The metal has jumped 3.9% this week – the strongest weekly gains we’ve seen since late August. On Thursday, both silver and gold tested symbolic barriers. Silver pushed above $18.00, while gold tested the $1500 level. What is interesting about this recent upswing is that it is occurring simultaneously with a rally in the equity markets. Investor confidence is high, as geopolitical hot spots such as the Persian Gulf have been calm lately and the U.S. economy remains strong. This has sent the equity markets higher. Precious metals often weaken when risk appetite is high, but that has not been the case this week.
Silver also received a boost from soft durable goods orders reports at the start of the week. Durable goods orders plunged 2.0% in November, compared to a gain of 0.6% a month earlier. This was shy of the estimate of +0.2%. The core release, which excludes volatile items such as aircraft orders, slowed to 0.0%, down from 0.6% in October. This figure was well off the estimate of a 1.5% gain.
Silver Technical Analysis
Silver continues to gain ground this week, and the silver forecast indicates an upward trend for the metal. On Thursday, the metal tested the 18.00 line, which has psychological significance. Above, there is resistance at 18.60. On the downside, we find support at 17.50, followed closely by the 50-EMA line at 17.23.