Silver Prices Steady as $18.00 Level Remains Vulnerable

After a promising start to the week, silver has leveled off on Tuesday. In the  European session, the metal is trading at $17.83, unchanged on the day.

Silver Muted Despite Attack on Saudi Oil Field

Silver posted strong gains last week, but the metal has been flat so far this week. The metal did not show much response to the spike in oil prices on Monday, a reaction to the attack on a Saudi oil refinery. Silver has been acting as a safe-haven asset, but both gold and silver were muted on Monday. Investors are looking ahead to the Federal Reserve meeting on Wednesday.

Technical Analysis

I continue to keep a close eye on the round number of $18.00. On Monday, silver tested this resistance line, but has been unable to consolidate above this line. Above, $18.50 is a major resistance line. If silver can break through, it would have room to make a run at $20.00, a psychologically significant level. On the downside, there is immediate support at $17.50. This is followed by support at $17.00, which has held since August 23.