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Silver Prices Hovering at $18.00

By:
Kenny Fisher
Updated: Oct 28, 2019, 13:29 UTC

Silver has started the week quietly. In Monday's European session, the metal is trading at 18.00, up 0.08% on the day. Silver Breaks Above $18.00 After

Silver daily chart, October 25, 2019

Silver has started the week quietly. In Monday’s European session, the metal is trading at 18.00, up 0.08% on the day.

Silver Breaks Above $18.00

After trading sideways for much of the month of October, silver put together a late-week rally. The metal punched past the symbolic round number of $18.00 on Friday, the first time that has occurred since September 25.

The catalyst for last week’s gains were soft manufacturing data out of the U.S. Durable goods orders declined 1.1%, while the core reading fell 0.3%. Both releases fell short of the forecasts. As well, the manufacturing PMI came in at 51.5, which is barely in expansion territory. These weak releases underscore a sputtering manufacturing sector, which continues to weigh on the domestic economy. Investors were clearly jittery after these releases on Thursday, as precious metals took advantage. Gold prices climbed close to 1.0%, while silver gained 1.72% on Thursday and added another 1.0% on Friday. These strong gains show that investors continue to view silver a safe-haven asset, which is sensitive to investor risk appetite. Investors are keeping one eye on Wednesday, as the U.S. will release the initial GDP release for the third quarter, and the Federal Reserve will publish its rate decision.

Silver Technical Analysis

After four successive sessions of sideways trading, traders and investors were treated to some movement from silver on Thursday. The upward trend has continued on Friday and has broken above resistance at the round number of 18.00. This is a major development, and if silver can close the week above the 18.00 line, it has room to make significant gains next week. The 50-EMA is providing support just above 17.50. Further down, there is support at 17.00, followed by the 200-EMA at $16.37.
XAG/USD 1-Day Chart

About the Author

Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.

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