Silver Hovering Close to $18.00 After Roller-Coaster Week

After a roller-coaster week, silver is trading just below the $18.00. The U..S and Iran have both signaled de-escalation after the recent tensions, which could weigh on safe-haven assets such as silver.
Kenny Fisher
Silver Price Forecast - Silver Markets Run Into Brick Wall

Silver has started the week with slight losses, erasing most of the gains seen on Friday. Currently, silver is trading at $17.95, down $0.14 or 0.81% on the day.

Silver Retracts, Falls Below 18.00

Last week’s dramatic events in the Middle East triggered sharp volatility in silver prices. On Wednesday, silver prices climbed 4.3 percent after Iran launched missile attacks on two U.S. military bases in Iraq. However, the Iranian attack appeared calculated to avoid U.S. casualties and caused minimal damage. Investors took this as a signal that Iran was ready to de-escalate the situation, after saving face with an attack against U.S. forces. Silver prices responded by falling back below the 18.00 level, which has psychological significance.

Silver Rises After U.S Job Numbers Slip

The U.S. labor market has been a key pillar in the strong U.S. economy, but December employment numbers, released on Friday, were a major disappointment. Nonfarm payrolls dropped sharply to 145 thousand, compared to 266 thousand a month earlier. This missed the estimate of 162 thousand. Wage growth fell by 0.1% to 2.9%, its lowest level since July 2018. Despite all the talk about a ‘tight’ labor market, weaker real wages will likely translate into reduced consumer spending, which could spell trouble for economic growth in 2020.

The weak numbers weighed on investor risk appetite and boosted silver on Friday, which crossed above the symbolic 18.00 level. However, silver was unable to consolidate these gains and finds itself again looking upwards towards the 18.00 line on Monday.


Silver Technical Analysis

I continue to keep an eye on the 18.00 level, which is fluid. Above, there is resistance at 18.60, which is protecting the 19.00 line. On the downside, there is support at 17.50, followed by the 50-EMA line at 17.49.

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
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.
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.