Silver Prices Slip to 5-Week Low as Risk Appetite Improves

Silver has dropped below the $17.00 level, as optimism over the U.S.-China trade talks have boosted risk appetite.
Kenny Fisher
Rows of golden and silver bars

Silver continues to lose ground in Friday trade, after sustaining sharp losses on Thursday. In the European session, the metal is trading at $16.97, down $0.13 or 0.81% on the day.

Silver Breaks Below $17.00

Silver fell by almost 3.0% on Thursday, marking the sharpest one-day decline since September 30. The pair dropped below the 17.00 level for the first time since October 1, and the metal is currently trading at 16.98.

Trade Talks Optimism Send Silver Reeling

Silver has plunged 6.2% this week, as the metal is headed towards its worst week since October 2016. Precious metals are sharply lower, as investor risk appetite has climbed, sending equity markets higher. The catalyst for the optimism is renewed expectations that the U.S. and China are close to reaching an interim trade deal, known as “Phase 1”. This would allow the two countries to reach a limited trade agreement, while leaving the most intractable issues for another round of negotiations. On Wednesday, the Chinese commerce ministry announced that the two countries would phase out the trade war tariffs, but it did not provide a timetable for such a move. A new trade deal could significantly boost global trade, which has been damaged by the bitter trade war. If there are further signs that a deal is near, traders can expect silver prices to continue to head lower.

Silver Technical Analysis

Silver’s sharp slide this week has pushed the metal below the key support line of $17.00. This is a significant development, as the line has held since October 1. On the downside, we find support at 16.50, which last saw action in early August. On the upside, the 50-EMA, which is at 17.56, could act as a short-term resistance line. Higher up, there is resistance at 18.30.
XAGUSD 1-Day Chart

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US