Silver has leveled off in Monday trade, after sustaining losses on Friday. In the European session, the metal is trading at $16.88, up $0.09 or 0.58% on the day.
Silver Looking up at 17.00 Level
Silver has pushed below the 17.00 level late last week, after this line had remained intact since October 1. On Friday, the metal touched a low of 16.67, its lowest level since mid-August.
Trade Talks Optimism Send Silver Reeling
Silver plunged 7.1% last week, as the metal suffered 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.