The third estimate for U.S. GDP in Q2 was released with little fanfare, as the reading of 2.0% confirmed the second estimate. Although this reading was widely expected, it reiterates that the U.S. economy has slowed down considerably in the second quarter – the economy grew by 3.1% in the first quarter. The Federal Reserve’s recent rate hike highlights concern about the health of the economy, and if investor confidence sags, silver prices could move upwards.
Silver Technical Analysis
The round number of 18.00 continues to be relevant. Silver posted sharp losses on Wednesday and broke below support at 18.60 and at 18.00. The latter line remains fluid and is currently an immediate resistance line. I expect further activity around the 18.00 line, but 18.60 appears safe in resistance. On the upside, 18.80 is the last resistance line protecting the 19-level. On the downside, there is a major support level at 17.50.